The price of XRP has reached a level highest level ever (ATH) at $3.4, sparking bullish sentiment in the XRP community. This price augment is due to bullish fundamentals, including Donald Trump’s openness to a cryptocurrency reserve that would include the coin.

Factors behind XRP’s rally towards ATH

CoinMarketCap data shows that the price of XRP rose to $3.40 yesterday, a price level that represents the current all-time high (ATH) on some exchanges such as Binance and Kraken. This price augment occurred due to several factors, including a report that Donald Trump is open to the idea of ​​a rollout America’s first strategic reserve.

As Bitcoinist reports, this initiative would focus on cryptocurrencies that were created in the USA, including: XRP, Solanaand USDC. This is an upside for these coins as it would lead to greater adoption. This news has already sparked bullish sentiment among investors, leading to a surge in XRP prices.

Previously, these investors, especially cryptocurrencies, had been accumulating, which was another factor contributing to the rise in XRP prices. Bitcoinist reported that this category of investors had bought 1.43 billion coins in two months. This is of great importance considering that accumulation trends always lead to price discovery, which is currently observed with XRP.

This accumulation trend appears to have intensified following news of a potential cryptocurrency reserve involving XRP. CoinMarketData shows that the coin’s trading volume increased by 7% in the last 24 hours, with a turnover of $24.18 billion during the period. This augment in trading volume has also contributed to the augment in XRP prices.

Meanwhile, it is worth mentioning that the USA Securities and Exchange Commission (SEC) filed an opening statement in the appeal against Ripple. However, this change was considered bullish for the price of XRP because the Commission did not challenge Judge Analisa Torres’ ruling that XRP is not a security.

Why price increases are likely to continue

The rally in XRP prices is likely to continue based on bullish fundamentals and technical data. From a fundamental point of view Donald Trump is scheduled to take office on January 20, which means this cryptocurrency reserve, which will include XRP, could be created sooner rather than later. The Trump administration is also bullish on XRP due to the possible emergence of pro-crypto Paul Atkins as the next SEC chairman.

Paul Atkin’s pro-crypto This position has led to predictions that the Commission will likely withdraw its appeal against Ripple once he takes office. The Commission is also expected to approve pending applications for XRP ETFs under Atkins.

From a technical perspective, cryptocurrency analysts have also provided a bullish outlook for the XRP price. CasiTrades cryptocurrency analyst predicted that XRP would break its ATH and rise to between $8 and $13.

As of this writing, XRP is trading at around $3.34, up over 7% in the last 24 hours, according to CoinMarketCap data.

Featured image created with Dall.E, chart from Tradingview.com