Why is the Ripple (XRP) Price Up Today?

TL;DR

• XRP surged 12% in 24 hours to $2.37, driven by a broader crypto market revival and increased network activity, including higher transaction volumes.
• Technical indicators, such as tightening Bollinger Bands, suggest a major price movement could be incoming, signaling potential for either a significant rally or a steep correction.

Back to the Green Track

Ripple’s XRP performed quite shaky between Christmas and New Year’s Eve, with its price briefly plunging below $2. However, the bulls stepped in on the first two days of 2025, pushing the valuation to as high as $2.42. Currently, XRP is worth around $2.37 (per CoinGecko’s data), representing a 12% increase on a 24-hour scale.

One factor potentially contributing to the solid resurgence is the overall revival of the cryptocurrency market. Bitcoin (BTC) surpassed $95,000, Ethereum (ETH) crossed $3,400, while Solana (SOL) charted a 9% daily pump to reach $206.

Other leading digital assets well in the green today (January 2) include Dogecoin (DOGE), Cardano (ADA), Stellar (XLM), and many more. Meanwhile, the total market capitalization of the crypto sector jumped above $3.5 trillion again. 

Another factor could be the rise of some essential XRP-related metrics. Data shows that the payment volume from one account to another and the number of executed transactions jumped to multi-week highs on January 1. 

Such resurgences typically suggest heightened interest or activity in the XRP ecosystem. Positive trends in those indicators might reflect bullish sentiment, attracting more buyers and possibly triggering upward pressure on the valuation. 

It’s also interesting to note that when Ripple released its monthly XRP tokens from Escrow, they included a note that said:

January 20th is around the corner. Donald Trump will be in the WH, and we are going to make crypto great again!

Recent XRP Predictions

While the price of XRP has skyrocketed by triple digits in the past year, numerous analysts believe the rally is far from over. X user Captain Faibik recently claimed that the asset “looks promising” for another 50% jump, setting $3.66 as the next target. 

Earlier this week, JAVON MARKS and Ali Martinez also chipped in. The former thinks XRP’s price condition as of late resembles the one observed in 2017 (shortly before the bull run that took it to a new all-time high).

“Prices right now may only be getting ready to come out of an ‘Intermission Phase’ before yet another ‘groundbreaking’ bullish rally! It may be time to strap in,” the X user assumed. 

For their part, Martinez envisioned a “big movement” based on the squeezing Bollinger Bands. The technical indicator, developed by John Bollinger in the early 1980s, helps traders detect when an asset may be overbought or oversold and spot possible price breakouts or trend reversals.

Tightening the bands means XRP has experienced relatively low volatility for a prolonged time, which could be a precursor of a huge rally or an intense pullback.