XRP Starts 2025 with a strong price surge

On January 2, 2025, XRP recorded its largest daily gain since December 2, 2024, with an increase of over 14%. This rebound follows an upward trend that has been characterizing major cryptocurrencies at the start of the new year. The price surge appears to have been driven by a significant increase in trading volumes, particularly on South Korean markets. Additionally, XRP recently broke through a key resistance level at $2.30, signaling positive consolidation and potential further gains.

Significant XRP Movements

One factor that seems to have contributed to XRP's growth is the transfer of 500 million XRP by Ripple, worth over $1 billion. The move drew attention, especially due to the message attached to the transaction, which read: "January 20th is around the corner. Donald Trump will be in the White House, and we will make crypto great again!" This statement may have fueled market enthusiasm, given the correlation between Trump's victory in the November 2024 elections and XRP's subsequent rise.

The upward trend can also be attributed to unusually high trading volumes on major South Korean exchanges, particularly Upbit, which recorded $1.3 billion worth of trades. As highlighted by CoinDesk, South Korean exchanges have historically been an indicator of bullish volatility for XRP.

Increase in Open Interest

Another factor that has fueled XRP's price surge is the rise in open interest (OI) on XRP futures. Open interest represents the total number of outstanding futures contracts that have not been closed or liquidated. An increase in OI indicates that more positions are being opened in the market, with more capital betting on the future price direction. This was the case in the first two days of 2025, when, according to Coinglass data, OI on XRP futures increased by 25%, reaching $2.37 billion by January 2, 2025, reversing the 54% decline observed in December. A significant rise in open interest over a short period can be interpreted as a sign of a potential bullish trend, as many traders are opening new long positions, betting on further price increases. Moreover, short liquidations have reached their highest levels since December 20, 2024, with over $15 million in liquidations over the past 24 hours, contributing to the bullish breakout.

With increasing institutional adoption, cryptocurrency market forecasts for 2025 remain optimistic. This positive outlook for XRP, fueled by factors such as the upcoming inauguration of Trump as U.S. president, along with recent favorable developments in its market, suggests that the cryptocurrency could be set for a strong year ahead.

Sources: Cointelegraph.com, Coindesk.com, Coinglass.com

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The information contained in this article should not be interpreted as recommendations or advice for purchasing Bitcoin or other cryptocurrencies. Cryptocurrency ownership carries the risk of total capital loss.