XRP's price surge to $1.35 is largely attributed to Japan's recent classification of the token as a financial asset, which has reduced regulatory uncertainty for Japanese banks and investors.
As a result, investor sentiment has improved, with many anticipating a sharp price recovery driven by growing optimism and concrete regulatory progress in both Japan and the US.
The passage of the Crypto Act in the US is also seen as a positive development, which could unlock significant inflows into exchange-traded funds (ETFs) and support XRP's medium-term trajectory.