Ripple's price has risen for three straight days as Bitcoin and other altcoins rebound on the first trading day of the year, indicating a potential January impact.

ripple (XRP(to $2.40 on Thursday, marking its highest level since December 18 and up 26% from last week's low.

There are several reasons why the price of XRP is rising, and why the momentum may continue in the next few weeks. First, Donald Trump will be inaugurated as president this month, while Gary Gensler is expected to resign before then.

Trump named Paul Atkins To be the next Chairman of the Securities and Exchange Commission. Atkins, a veteran regulator, has shown support for the cryptocurrency industry, signaling a potential shift from the Gensler era. Although these developments have already been priced in, Ripple and other cryptocurrencies may see further gains before these events.

Moreover, the odds of the SEC approving the XRP ETF are increasing. according to PolymarketThese odds have risen to 70%. Approval of a Ripple ETF could lead to increased buying, mirroring the effect seen with Bitcoin (Bitcoin) and Ethereum (Ethereum) ETFs, which added $35 billion and $2.6 billion in assets, respectively.

The XRP ecosystem is also showing signs of growth. Ripple US Dollar (RLUSD), its stablecoin has been added to several exchanges, including Bullish, Independent Reserve, and Uphold.

Furthermore, the XRP Ledger is expected to gain traction this year, which could boost Ripple's role in industries like decentralized finance and real-world asset tokenization.

Ripple's price also benefits from January effect, A situation where investors return from vacation and buy assets.

XRP price has strong technicals

XRP price rise is in line with... We expected Last week. In this analysis, it was suggested that the currency's recent decline was part of a mean reversal, a process in which an asset returns to its historical averages after a significant rally. For XRP, this involved a decline towards the 50-day moving average.

Ripple also formed a bullish pennant chart pattern, characterized by a long vertical line followed by a period of consolidation. This pattern often leads to a strong breakout, which appears to be underway.

As a result, the price of XRP is likely to continue rising, with the next target at $2.90, roughly 21% above the current level. Further gains could push the price towards resistance at $3, and perhaps $5. Conversely, a drop below the 50-day EMA at $1.90 would invalidate this bullish outlook.