Why is the Ripple (XRP) Price Up Today?

TL;DR

• XRP saw a significant 12% recovery, regaining momentum and outperforming many major cryptocurrencies.
• Check out some of the possible factors that may have fueled the pump.

What’s Driving the Surge?

Ripple’s native token took a major blow on January 27, with its price dropping from over $3.10 to below $2.80 in a matter of hours. The downturn was most likely caused by the overall market crash, which negatively affected countless overleveraged traders. 

Today, though, the landscape looks quite different, with many of the leading cryptocurrencies charting substantial gains. XRP is among the top performers, with its valuation rising by approximately 12% on a 24-hour scale and currently trading at around $3.11 (per CoinGecko’s data).

The market’s resurgence is not the only factor potentially fueling the asset’s rally. Another important reason could be Ripple’s latest expansion move on US soil. The company secured key Money Transmitter Licenses (MTLs) in New York and Texas. 

Such permits allow Ripple to access a licensed version of the cross-border payments solution in America, where transactions are managed end-to-end by the firm on behalf of the customer. Commenting on the matter was Joanie Xie, Managing Director of North America at Ripple:

“We’re continuing to see more interest from financial institutions to crypto businesses that want to unlock the benefits of crypto and blockchain for faster, cost-efficient and 24/7 cross-border payments. With years of experience working in both crypto and with financial institutions, Ripple is well-positioned to support companies who are ready to take advantage of the current landscape.”

Last but not least, we should mention the whale activity. According to the popular X user Ali Martinez, such large investors have purchased 120 million XRP (worth more than $370 million at current rates) during the recent price dip. 

Those actions reduce the token’s circulating supply and could trigger a rally (assuming demand heads north or keeps steady). The whales’ buying spree may also encourage smaller players to hop on the bandwagon, thus injecting fresh capital into the ecosystem. 

You may also like:

• Ripple Secures Preliminary Electronic Money Institution License in Luxembourg
• ETH, XRP, and Meme Coins Shine as Retail Sentiment Reacts to Short-Term Catalysts
• End of a Ripple Era: Here’s What Happened With the Spot XRP ETFs Last Week

Bonus: XRP Exchange Reserve

The amount of XRP coins stored on cryptocurrency exchanges is also worth noting. While the figure registered a substantial spike in mid-January, over the past few weeks it has been on a downfall. 

This could be interpreted as a bullish sign, suggesting a possible shift from centralized platforms toward self-custody methods and, hence, reduced immediate selling pressure.