XRP Overtakes Solana and Tether: A 25% Surge
In a surprising turn of events, Ripple Labs-backed XRP has overtaken both Solana (SOL) and Tether (USDT) to become the third largest cryptocurrency by market capitalization. The altcoin surged over 25% in the last 24 hours, trading at approximately $2.40 during the early Asian session on December 2.
Current Market Position
XRP now boasts a market capitalization of around $140 billion and a fully diluted valuation exceeding $240 billion. During this reporting period, the token also registered a 45% increase in daily average traded volume, reaching about $23 billion.
Why Is XRP Going Up?
The recent price increase can be attributed to several key factors:
- The election of pro-crypto leaders in the United States, particularly President-elect Donald Trump, has positively influenced market sentiment.
- It is anticipated that long-standing legal hurdles related to the U.S. SEC charges against Ripple may be resolved once a new SEC chair is confirmed early next year.
- Heavy liquidation of short traders has contributed to the surge. Data from Coinglass indicates that XRP’s leveraged market saw liquidations exceeding $50 million, with over $36 million involving short positions.
Whale Activity and Market Dynamics
On-chain data reveals increased activity among whale traders, particularly those associated with Ripple. Notably:
- Ripple unlocked 1 billion XRP from its escrow account and subsequently locked back over 800 million units.
- Significant transactions have been reported, with whale investors withdrawing large amounts of XRP from exchanges, including Upbit and Binance.
What’s Next for XRP Price?
After a remarkable 280% surge in November, XRP has officially broken out of a multi-year triangular consolidation pattern. The altcoin is now on the verge of testing its all-time high (ATH) set in 2018, having surpassed its peak from the 2021 bull cycle.
From a technical analysis perspective, XRP appears to have entered a much-anticipated parabolic phase, which may lead to further gains in the upcoming months. The weekly Relative Strength Index (RSI) has surpassed the 85% threshold for the first time since 2021, signaling strong bullish control.
Potential Risks Ahead
While the outlook for XRP remains positive, traders should remain cautious of a potential correction following such a significant bullish breakout. Historical trends suggest that after massive price increases, a pullback is often seen before a continuation of the upward trend.
Conclusion
XRP’s recent surge and newfound position as the third largest cryptocurrency by market cap showcase its potential for growth in the ever-evolving crypto landscape. With favorable market conditions, increased whale activity, and the possibility of legal resolutions, XRP presents a compelling case for both new and seasoned investors. However, as always, it’s essential to approach investments with caution and to stay informed about market developments.
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