Why is XRP price up today?

XRP XRPUSD price has seen modest gains alongside the cryptocurrency market, up 1.5% in the past 24 hours to hit an intra-day high of $0.5184 on Nov. 5.

Accompanying XRP’s price gains is high trading activity, which has also picked up over the last 24 hours. XRP’s spot trading volumes topped $1.05 billion on Nov. 5, up 10% on the day.

Its market capitalization has also increased to $29.14 billion, cementing its position as the seventh-largest cryptocurrency in the world.

Let’s look at the factors driving the XRP price up today.

XRP price bolstered by Ripple’s Q3 report

XRPs bullish performance on Nov. 5 followed the release of Ripple’s quarterly report highlighting significant developments for the remittance token, a growing institutional interest in XRP investment products, and the company’s legal victory against the United States Securities and Exchange Commission (SEC).

In a report published on Nov. 1, the blockchain company said that despite regulatory challenges, the market has exhibited a positive trend in Q3/2024, fueled by factors such as the 0.5% Fed rate cut on Sept. 18, the launch of US-based spot Ethereum ETFs, and increasing institutional adoption. 

“With the court’s decision in the SEC’s case against Ripple affirming that XRP is not, in and of itself, a security, XRP and BTC are still the only two tokens with regulatory clarity in the US,” the company emphasized, referring to its victory against the financial watchdog.

Since the ruling, US exchanges that had delisted XRP have relisted it, contributing to growing investor confidence in the token. This is evidenced by applications by asset management firms such as Bitwise, Canary, and 21Shares to introduce XRP exchange-traded funds.

ETFs are a significant access point for institutional investors to gain exposure to digital assets, the report said, adding:

Increasing onchain activity underpins XRP price

XRP’s bullish performance on Nov. 5 was preceded by higher network activity. Ripple’s onchain activity rebounded from the dip in May and June, with the number of successful transactions doubling in the third quarter, data shared by Ripple shows.

The total value locked (TVL) in automated market makers (AMMs) also grew significantly, doubling from $8.5 million to $16.2 million over the same time frame. New wallets interacting with the network saw a quarter-on-quarter increase of 11%.

When network activity increases, it suggests greater demand for XRP tokens, which adds to the buying pressure on the market.

Bullish chart pattern hints at “major move”

Favorable price chart technicals are also helping XRP price as data from Cointelegraph Markets Pro and TradingView shows it trading 76% higher than the $0.2870 low set during the 2022 bear cycle.

According to popular crypto analyst Steph Is Crypto, this price action has formed a bullish chart pattern on the weekly timeframe, forecasting a massive breakout for XRP in the near term.

“XRP has officially entered Phase D of the Wyckoff Accumulation!” Steph Is Crypto said in a Nov. 4 post on X. 

XRP holders have been eagerly waiting for the altcoin to start moving higher after failing to break above $1 following the “XRP is not a security” ruling in July 2023. 

Meanwhile, fellow market analyst and YouTuber Levi observed that XRPs Bollinger Bands have narrowed, suggesting that an “explosive” price movement is on the horizon. 

Steph Is Crypto added that XRP price has historically surged during past US Election cycles, rallying 40,337% in 2017 and 566% in 2020.

If history repeats itself, XRP could experience another explosive growth going into 2025.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.