- Ripple’s cap surged to $108.2 billion to reclaim the fifth spot
- XRP has surged by 21.08% to hit a three-year high
As a seasoned crypto analyst with over a decade of experience in this dynamic market, I must admit that Ripple’s recent surge is truly captivating. The altcoin’s comeback to the top five by market cap is reminiscent of a phoenix rising from the ashes, and it’s hard not to feel a sense of awe watching this spectacle unfold.
Over the last day, Ripple (XRP) has experienced one of its most impressive resurgences in the history of cryptocurrencies. For the first time since 2018, the market capitalization of XRP has exceeded the $100 billion mark, putting it ahead of Binance Coin [BNB] for the first time.
As reported by CoinMarketCap, the value of XRP’s market capitalization currently stands at approximately $108.22 billion. This substantial rise, amounting to 21.38% over the past day, has propelled XRP into fifth position among cryptocurrencies ranked by market cap.
In 2018, the price of XRP surged to a record high of $3.13, with a market capitalization peaking at an impressive $120.76 billion. It’s intriguing to ponder about the factors fueling this growth and whether Ripple can maintain its position among the top five cryptocurrencies.
Factors driving XRP’s market cap
Based on AMBCrypto’s assessment, a key contributor to the rise is the evolving political climate in the U.S. Following the election of Donald Trump, this cryptocurrency (altcoin) has seen an extended upward trend due to his pledge to replace the current SEC chairperson.
It has been stated that Gary Gensler plans to step down from his position now that a new administration is in power. There’s increasing conjecture that the Securities and Exchange Commission may decide to discontinue the legal action against Ripple under this new leadership.
As the Securities and Exchange Commission (SEC) initiated numerous lawsuits against Ripple, the digital currency almost slipped out of the top 10, holding the second spot. However, with whispers of improved cryptocurrency regulations on the horizon, Ripple investors remain optimistic, hoping for further increases in value.
If the speculation proves correct and legal issues are resolved, it’s likely that Ripple’s XRP will continue holding its fifth position in the cryptocurrency market. Moreover, there’s a strong possibility that XRP could even surpass Solana, as the latter has had difficulty driving growth over the past year.
Can XRP finally see a sustained Rally?
Undoubtedly, XRP is experiencing a bullish sentiment with a strong upward momentum.
This optimistic trend is clearly demonstrated through substantial purchasing activity. As I write this, a bullish movement known as a Stochastic Relative Strength Index (RSI) crossover occurred 48 hours earlier, indicating that the current market dominance lies with buyers.
The strength among buyers is also reinforced by an increase in Open Interest (OI), as reported by Coinglass. Specifically, the Open Interest for XRP futures has reached a record high of $3.19 billion.
When the Open Interest (OI) increases, it suggests that investors are entering into new contracts as well as maintaining their current positions in the market.
Furthermore, the Stock-to-Flow ratio for Ripple now stands at a deficit of -221.57k, implying that withdrawals from exchanges are occurring at a faster rate than deposits.
This indicates a trend where more traders are transferring their assets from exchanges into personal wallets, which is reminiscent of stockpiling actions.
As an analyst, I’ve noticed a significant decrease in the movement of large whale holdings, particularly within the crypto market. According to Cryptoquant, the flow of whales’ assets from their wallets to exchanges has dropped significantly from approximately 15,800 transactions to around 1,400. This trend aligns with our previous observations suggesting that investors are choosing to hold onto their assets rather than trading them on exchanges.
What next for the altcoin?
In fact, at press time, XRP was trading at $1.89, marking a 21.08% increase over the past day.
Similarly, the altcoin has seen a rise over its weekly and monthly charts, climbing up by 22.12% and an impressive 262.29% in that timeframe.
Even though XRP recently saw an increase, it remains 50.94% lower than its peak price of $3.84, which was set seven years ago. This indicates that there’s potential for further growth in XRP, suggesting it might be currently underpriced. The decrease in Circulating NVT from 1353 to 109 hints at this undervaluation.
Read XRP’s Price Prediction 2024–2025
Consequently, if the positive trend continues, once XRP surpasses the $1.6 resistance point, it may encounter a new resistance at approximately $2.1 on its price graph.
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2024-11-30 17:12