XRP has experienced a remarkable 12% surge over the last 24 hours, trading at $3.11 as of January 28. This bullish momentum follows Ripple’s successful acquisition of Money Transmitter Licenses (MTLs) in New York and Texas, alongside other favourable market dynamics.

The cryptocurrency rebounded from a low of $2.66 on January 27, peaking at $3.21 on January 28, marking a 20% intraday rise. Key factors driving this recovery include Ripple’s expanding regulatory compliance in the US, the liquidation of overleveraged short positions in the derivatives market, and strong technical indicators pointing to further gains.

Ripple Secures Key US Licences

Ripple’s attainment of MTLs in New York and Texas marks a significant step forward in its regulatory compliance efforts. Both states are known for their stringent licensing requirements, making this achievement a crucial milestone for Ripple.

With the addition of these licences, Ripple now holds over 50 MTLs in the United States and more than 60 licences globally. These include a Major Payment Institution Licence in Singapore and virtual asset service provider registrations in Ireland and the Cayman Islands.

These licences enable Ripple to legally facilitate cross-border payments, bolstering trust among customers and increasing the potential real-world usage of XRP in financial transactions.

Short Squeeze Fuels XRP Rally

XRP’s price rally has also triggered significant activity in the derivatives market, with over $4.1 million worth of short positions liquidated in the past 12 hours. This dwarfs the $847,000 in long liquidations, signalling strong bearish pressure being forced out of the market.

The liquidation of short positions creates a cascading effect, driving prices higher as bearish traders are compelled to cover their positions. A similar pattern was observed earlier in January when $56 million in short liquidations led to a 46% price surge, propelling XRP to a seven-year high of $3.40.

Technical Indicators Suggest Further Gains

From a technical perspective, XRP appears poised for continued bullish momentum. The cryptocurrency is forming a classic bull flag pattern on the daily chart, indicating the potential for further upward movement.

This structure follows XRP’s rally from $2.27 on January 10 to a high of $3.40 on January 16, which confirmed a symmetrical triangle breakout. Currently, XRP is testing resistance at $3.10 along the flag’s upper boundary. A breakout above this level could trigger another rally, with an upside target of $4.62 for February—a potential 49% gain from the current price.

The Relative Strength Index (RSI) has risen from 58 to 62 in the last 24 hours, suggesting increasing bullish momentum. If key support levels hold, XRP could maintain its upward trajectory, with the next significant resistance at $4.62.

Outlook

Ripple’s regulatory milestones in the US, combined with favourable technical and market dynamics, are fuelling optimism for XRP’s price action. As Ripple expands its compliance footprint, the growing trust in its ecosystem could further drive XRP adoption, supporting its long-term price prospects.