Ripple price had a strong performance in January, outperforming popular cryptocurrencies like Bitcoin and Ethereum.
Ripple (XRP) rose by over 50%, while Bitcoin (BTC) jumped by 12%, and Ethereum (ETH) fell by 6%. It also did better than other large-cap coins like Polkadot, Solana, and Binance Coin.
Several catalysts drove XRP’s surge in January. The Ripple USD (RLUSD) stablecoin flipped top stablecoins like PayPal USD and Ethena USDe in terms of volume. Its daily volume on January 30 was $62 million, higher than PYUSD’s $29 million, and USDD had $3.9 million.
The XRP price also surged after Gary Gensler resigned, which ushered a new regulatory environment. The SEC, under Mark Uyeda and Paul Atkins, will be more friendly to the crypto industry.
As crypto.news reported, the agency plans to pause some legal proceedings among crypto companies. Ripple would benefit since its legal issues with the agency may end this year.
Further, odds that the SEC will approve a spot XRP ETF rose on Polymarket. As a result, JPMorgan analysts expect that such a fund would have over $8 billion in inflows this year. In contrast, Ethereum ETFs have had less than $3 billion in inflows since their launch.
The XRP price rose after Ripple Labs received a money transmitter license in New York. This means that the company can now work with other large firms in the state and also offer more services.
The XRP Ledger is also growing, with some ecosystem tokens like Sologenic, Crypto Trading Fund, XRP Army, and PHNIX gaining market share. Sologenic has a market cap of $174 million, while the XRPL total value locked hit a $80 million total value locked.
XRP price technical analysis
Technicals suggest that the XRP price will have a strong bullish breakout in February. The daily chart shows that the coin formed a bullish pennant pattern with a long vertical line and a symmetrical triangle pattern. It made a bullish breakout above its upper side at $2.90 on January 15.
Ripple has formed another smaller bullish pennant pattern, whose two lines of the triangle are nearing their confluence. Therefore, it will likely have a strong breakout in February, with the next possible target being the psychological level at $5, which is about 65% above the current level.
