Why is XRP price up today?

XRP’s XRPUSD price registered its largest daily return since Dec. 2, rising by 11.92% on Jan. 1, 2025, as Ripple looks forward to Donald Trump’s inauguration on Jan. 20.

Meanwhile, on shorter time frames, the XRPUSD trading pair broke above key resistance at $2.30 after testing $2 as support over the past two weeks.

Ripple moves 500M XRP from escrow

XRP price is up today following a significant XRP transfer worth over $1 billion. According to onchain data, Ripple moved 500 million XRP tokens from its escrow account to another Ripple-owned wallet.

However, an interesting note which piqued the market’s attention was attached to the transaction. It read,

This likely acted as a catalyst today as XRP has been one of the top performers since Donald Trump’s election win in November 2024.

Meanwhile, the XRP futures market flipped bullish on the first day of 2025. After a 54% drop in open interest (OI) in December, the crypto assets’ OI jumped by 25% over the past two days.

Related: Bitcoin ’seller pressure’ pushes Coinbase premium index to 12-month low

Data from CoinGlass indicated that the open interest increased from $1.86 billion on Dec. 31 to $2.37 billion on Jan. 2, 2025. These new positions opened over the past two days are possibly long, contributing to XRP’s positive rise.

Short liquidations have been at their highest since Dec. 20, with over $15 million wiped out over the past 24 hours. XRP short liquidations were also the third largest liquidated crypto asset, fueling XRP’s bullish breakout.

Additionally, after a flash rise in the XRP exchange reserve at the beginning of December, the supply on Binance decreased from 2.97 billion to 2.90 billion during the final week.

This indicates that spot buyers possibly bought the dip as XRP price corrected from $2.25 to $2.00.

Key XRP price levels to watch

On longer timeframes, XRP maintains a bullish market structure on the daily and weekly charts, but price fluctuations can be expected in the medium term.

As shown below, XRP oscillates within the trendlines of a symmetrical triangle pattern without a confirmed breakout.

A key resistance range between $2.50 and $2.60 may cap XRP’s rise. This particular level has acted as a key reversal point after XRP reached a yearly high of $2.90 in 2024, with XRP failing to convert it into a support level.

Currently, this range is confluent with the triangle’s descending trendline, which the XRPUSD pair might fail to break again.

A daily candle close of $2.60 would confirm a bullish breakout above this key trendline, leading to new yearly highs above $3, or a 26% gain.

Conversely, a drop to $2.10, where a daily order block is present, may hinder immediate bullish price action. A daily close above $2.30 will retain investors’ confidence, but a close below $2.30 might usher in another period of profit-taking.

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.