Ripple’s XRP skyrocketed to an all-time high yesterday after reports that President-elect Donald Trump is ready to establish a “US strategic reserve” of the cryptocurrency. This proposed reserve will reportedly include XRP and other assets.
These speculations have fueled strong activity in XRP markets, with spot trading volume surpassing $20 billion in the past 24 hours. With growing demand for this altcoin, its price may continue to increase in the short term.
Ripple Sees Transaction Volume Increase Thanks to Donald Trump
According to one report Jan. 16 from the New York Post, Trump is “open” to the idea of establishing a “U.S. priority strategic reserve” of cryptocurrency. This proposed reserve will include assets such as XRP, Solana (SOL), and Circle’s stablecoin USDC.
Due to this news, the price of XRP rose to an all-time high, reaching $3.40 during the 5th trading session. With heavy trading activity still going on, the trading volume has reached 24 billion USD in the past 24 hours, which is the highest since April 2021.
Currently, XRP trades at $3.33, up 7% in the past 24 hours. When the price and trading volume of an asset skyrockets, this indicates increased market activity due to increased demand. This combination implies strong interest in XRP and hints at a sustained price rally.
Besides, XRP open interest has also increased to an all-time high. This shows strong confidence from its derivatives traders, who are betting on further increases. To date, this number has reached 3.4 billion USD.
Open interest measures the total number of outstanding contracts (futures or options) that have not been settled or closed. When this number increases during a bull run, it implies that new positions are being opened, indicating strong confidence on the part of investors. This implies that the rally could continue as more market participants bet on further price movements.
XRP Price Prediction: Altcoin Could Hit New High Soon
XRP’s Aroon Index, observed on the daily chart, confirms its current strong uptrend. At this time, its Up Line is 92.86%, indicating a strong uptrend for this altcoin.
The Aroon indicator measures the strength of a trend. When the Up Line is close to 100%, this indicates a strong uptrend, with the price recently reaching significant highs. If this trend continues, XRP price will rise to a new peak soon.
However, if profit-taking begins, this could push the XRP price below $3 to $2.69.
