XRP, the cross-border payment token powered by Ripple, is leading the charge in an altcoin revival as crypto markets experience a strong recovery. On January 15, XRP surged by more than 13%, reaching an intraday high of $2.87 during Asian trading hours. This impressive rally has brought XRP within striking distance of its all-time high (ATH), just 17% away, following a slight pullback to $2.80 at press time.

Over the past two weeks, XRP has gained an impressive 33%, significantly outperforming most other altcoins, which have been struggling to keep pace. The latest performance puts XRP on track to challenge its peak from this cycle, which was already close to a seven-year high.

Whale Accumulation Supports XRP’s Surge

A key factor driving XRP’s remarkable rise is the continued accumulation by whales—wallets holding between 1 million to 10 million XRP. According to data from Santiment, these large holders have been accumulating the token aggressively, with their holdings increasing by over 37% since mid-November 2024. This has translated into an additional $3.8 billion worth of XRP added to whale wallets.

Santiment’s report highlights that this whale accumulation is fueling optimism around XRP’s future. The asset’s potential use in banking and financial transactions is generating increased excitement, with predictions of significant price increases and market cap growth in the near future. There is also growing speculation about the potential approval of an XRP exchange-traded fund (ETF), which could bring substantial investments into the token.

XRP’s Market Capitalization and the SEC Challenge

XRP’s market capitalization currently stands at $160 billion, making it the third-largest cryptocurrency by market cap, just behind Ethereum and Bitcoin. Despite its impressive growth, XRP still faces challenges, particularly from regulatory bodies. The U.S. Securities and Exchange Commission (SEC) continues to resist Ripple’s legal battles, including its recent decision to not postpone the filing of a brief as part of its appeal against a judgment favoring Ripple.

Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s actions, calling it a “waste of time and taxpayer dollars.” Ripple CEO Brad Garlinghouse echoed these sentiments, claiming that SEC Chairman Gary Gensler’s stance on cryptocurrency regulation was failing. Gensler is expected to step down soon, which could lead to a shift in the regulatory landscape, potentially easing the pressure on Ripple and XRP.

Other Altcoins Showing Strong Performance

XRP is not the only altcoin making waves in the market. Dogecoin (DOGE) also performed well, gaining 5% to surpass the $0.36 mark. Similarly, Cardano (ADA) gained 6%, reclaiming the $1 level. Ripple’s sibling, Stellar Lumens (XLM), spiked 8%, reaching $0.47.

AI-related tokens are also experiencing a boost following a report by Franklin Templeton, which predicted that AI agents would revolutionize social media content generation in 2025. This has drives interest in AI-driven projects and tokens, contributing to a broader market rally.

Will XRP Break $3 Soon?

XRP’s strong performance and whale accumulation suggest that the token is on the verge of reaching new highs. If demand continues to build, XRP could soon break its all-time high and push beyond the $3 mark. However, the ongoing legal challenges and market volatility could pose risks to this bullish outlook.

As XRP continues to gain momentum, it will be crucial to watch for any developments in the regulatory landscape and further signs of whale accumulation. If these factors align, XRP may be poised for a major breakout in the coming weeks.