XRP, one of the leading cryptocurrencies, experienced a remarkable 12% increase over the past 24 hours, reaching $3.11. This marks a 20% recovery from its January 27 low of $2.66, according to CoinMarketCap data. Analysts attribute this price rally to recent regulatory advancements by Ripple, short liquidations in the futures market, and bullish technical indicators signaling further upward momentum.
Ripple’s strategic regulatory milestones in the United States, specifically its acquisition of Money Transmitter Licenses (MTLs) in key states like New York and Texas, have boosted investor confidence. Simultaneously, a cascade of short liquidations added fuel to the upward trend, with more market participants pivoting toward a positive outlook for the digital asset.
Regulatory Progress Strengthens Market Confidence
Ripple’s announcement of securing additional MTLs in New York and Texas served as a key catalyst for the XRP price surge. These states are known for their stringent financial regulations, making these licenses a significant milestone for the company. With these additions, Ripple now holds over 50 MTLs in the U.S. and 60 globally, including certifications in Singapore, Ireland, and the Cayman Islands.
These licenses enhance Ripple’s ability to facilitate cross-border transactions using XRP, demonstrating its growing credibility as a financial tool. The market’s positive reaction reflects heightened trust in the cryptocurrency’s regulatory compliance, directly contributing to the recent price hike.
Short Liquidations Trigger Buying Pressure
Another pivotal factor in XRP’s rally was the forced liquidation of short positions in the futures market. Over the last 12 hours, approximately $4.1 million worth of short positions were liquidated, compared to just $847,000 in long liquidations.
When traders betting on a price decline are forced to cover their positions, they must buy XRP, intensifying buying pressure. This cascading effect has been a recurring pattern, as seen earlier this month when $56 million in shorts were liquidated, driving XRP to a peak of $3.40. The current wave of liquidations underscores the bullish sentiment surrounding the asset.