XRP price rises following technical breakout and market optimism

XRP's (CRYPTO:XRP) price has increased by 5.7% in the past 24 hours, reaching $3.28, as it recovers from losses incurred on January 19.

This upward movement is attributed to several key factors, including a breakout from a symmetrical triangle pattern, which often signals potential price increases.

Investor sentiment has been buoyed by expectations surrounding President-elect Donald Trump's inauguration on January 20.

Many in the crypto community are hopeful that Trump's administration will foster a more favorable regulatory environment for cryptocurrencies.

During his campaign, Trump indicated intentions to transform the U.S. into a crypto-friendly nation and suggested he would remove SEC Chair Gary Gensler on his first day in office.

Gensler's departure is anticipated to shift the regulatory landscape, particularly concerning ongoing legal matters involving Ripple Labs and XRP.

Reports indicate that Trump may issue pro-crypto executive orders shortly after taking office, potentially paving the way for the approval of a spot XRP ETF.

Such approval could attract significant investment, with estimates suggesting that it might bring in between $4 billion to $8 billion within the first five months.

Additionally, the open interest in XRP futures has surged to record levels, indicating strong investor confidence and market momentum.

Open interest reached an all-time high of $7.6 billion on January 18, reflecting a 90% increase since early January.

This rise in open interest often correlates with bullish price movements, as it suggests that traders are betting on continued upward momentum.

Technical analysis shows that XRP is targeting a short-term price of approximately $3.60 following its breakout from the symmetrical triangle pattern.

For this target to be achieved, XRP must first overcome resistance at around $3.40, which marks a seven-year high.

At the time of reporting, the XRP (XRP) price was $3.08.