XRP Soars to $3, a 7-Year High, as Major Investors Add $3.8B in Tokens to Their Holdings

XRP surged past its previous highs on Monday, seeing significant gains as traders respond to favorable news and anticipation for a potential exchange-traded fund (ETF) approval. The token has been benefiting from heightened investor interest, sparked by Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which is now showing signs of a resolution under the incoming administration. This speculation is fueling growth as the market reacts positively to the expectation of a favorable regulatory environment.

XRP reached a new 7-year high, briefly touching $3 for the first time since early 2018. It then slightly pulled back to $2.95, still reflecting an 11% increase over the last 24 hours. In comparison, Bitcoin (BTC) and the broader CoinDesk 20 Index posted more modest gains, reinforcing XRP’s strong performance.

The impressive rally is also linked to large investors, with entities holding between 1 million and 10 million XRP increasing their holdings by approximately 1.4 billion tokens, valued at $3.8 billion. This accumulation suggests confidence in XRP’s future prospects, despite the ongoing market volatility. With further institutional interest, XRP’s price movement could set new all-time highs, with some analysts predicting a possible breakout above the 2018 peak of $3.40.

The sentiment surrounding XRP’s price performance is underpinned by expectations of a forthcoming approval for a spot XRP ETF. Ripple’s recent moves, including the launch of the RLUSD stablecoin, and growing partnerships, are providing additional bullish signals to the market. Analysts are increasingly optimistic that the upcoming U.S. administration will expedite crypto regulations, setting the stage for more positive price action for XRP.