XRP price rises as January Effect starts, Ripple ETF odds rise

Ripple price rose for three consecutive days as Bitcoin and other altcoins rebounded on the first trading day of the year, indicating a potential January Effect.

Ripple (XRP) climbed to $2.40 on Thursday, its highest since December 18 and up 26% from last week’s low.

There are several reasons why the XRP price is rising and the momentum should continue over the next few weeks. First, Donald Trump will take office this month, and Gary Gensler is expected to resign before that.

Trump appointed Paul Atkins as the next chairman of the Securities and Exchange Commission. Atkins, a veteran regulator, has signaled a potential shift from the Gensler era by showing support for the crypto industry. While these developments have already been priced in, Ripple and other cryptocurrencies may see further gains ahead of these events.

Moreover, the chances of the SEC approving an XRP ETF are also increasing. According to Polymarket, these rates have increased to 70%. Approval of a Ripple ETF could drive more buying, mirroring the impact seen with Bitcoin (BTC) and Ethereum (ETH) ETFs, which added $35 billion and $2.6 billion in assets, respectively.

XRP’s ecosystem is also showing signs of growth. Its stablecoin Ripple USD (RLUSD) has been added to many exchanges, including Bullish, Independent Reserve, and Uphold.

Additionally, the XRP Ledger is expected to gain traction this year, potentially solidifying Ripple’s role in sectors such as Decentralized Finance and Real World Asset tokenization.

Ripple price is also benefiting from the January Effect, where investors return from vacation and buy assets.

XRP price has strong technical features XRP price chart | Source: crypto.news

The XRP price increase is in line with what we predicted last week. In this analysis, it was suggested that the cryptocurrency’s recent pullback was part of mean reversion, a process in which an asset returns to its historical averages after a significant rise. For XRP, this meant a decline towards the 50-day moving average.

Ripple also formed a bullish pennant chart pattern characterized by a long vertical line followed by a period of consolidation. This pattern often leads to a strong breakout that appears to be on its way.

As a result, the price of XRP is likely to continue rising and the next target is $2.90, approximately 21% above the current level. Further gains could push the price towards the $3 and potentially $5 resistance. Conversely, a decline below the 50-day moving average of $1.90 would invalidate this bullish view.