Ripple (XRP) surged more than 10% following the investment news from Japan's financial group SBI. There are also forecasts that Ripple may soon reach $11.
According to CoinMarketCap on the 2nd, Ripple recorded $2.41 at 9:25 a.m. (Korea Standard Time), up 14.75% from the previous day. By 3 p.m., it was trading around $2.35, still maintaining a high price. This marks the first time Ripple has broken $2.3 since the 27th of last month. Ripple's all-time high is $3.84.
The reason for the surge in Ripple's price that day is attributed to Japan's SBI, one of the world's largest integrated online financial groups, increasing its investments in Ripple. The company owns 7% equity in Ripple Labs, the issuer of Ripple. Reports indicate that investments related to Ripple amount to approximately 1.4 trillion yen (about 1.47 trillion won), which is more than SBI's market capitalization, currently at 1.2 trillion yen.
Before November 5th last year, Ripple had remained around the $0.5 level, but it has been on an upward trend since Donald Trump was elected in the U.S. presidential election. Ripple Labs, the issuer of Ripple, supported the Trump candidate alongside Coinbase. Immediately after the election, Brad Garlinghouse, CEO of Ripple, reportedly met with President Trump to convey requests from the virtual asset industry. Ripple Labs has been embroiled in a lawsuit with the Securities and Exchange Commission (SEC), led by Chairperson Gary Gensler, which has hindered its operations for years. As Gensler is expected to resign with the inauguration of Trump’s second term, expectations are rising that the lawsuit risk will be alleviated.
As a result, CoinDesk, a cryptocurrency-focused media outlet, viewed Ripple's strong resistance level at $2.27, suggesting that the breakthrough could solidify the rally. It also observed the possibility that it could test $2.55.
Previously, in the virtual asset industry, the possibility of a rebound in Ripple's price was raised, presenting an optimistic outlook. It is believed that it could reach new highs more quickly than expected. Cryptocurrency market expert Ali Martinez recently stated that Ripple is preparing for a significant increase, saying, "One of Ripple's most promising setups has emerged ahead of the new year," and predicted that Ripple could rise to as much as $11 by 2025. He also mentioned that the failure of selling forces to push the price below $2 is a key signal for the continuation of the bull market.
Another cryptocurrency analyst, Egrak Crypto, also claimed that Ripple could reach $150 by January 2025. This is based on patterns from previous bull markets, he argues. However, he emphasized that significant capital inflows and positive market sentiment are necessary.
An official from domestic blockchain research firm Tiger Research said, "As a first-generation coin, Ripple has a particularly strong preference among Asian investors," adding, "This seems to be a factor contributing to the positive price reaction due to the influx of Japanese capital."
He continued, "The recent price surge of Ripple is the result of a convergence of macroeconomic changes and a reassessment of corporate value," noting that it is anticipated that the regulation of the SEC will be eased with the inauguration of the Trump administration, alongside the announcement of institutional investors launching a tokenized MMF fund based on the Ripple ledger, which has acted as practical use cases.