Crypto Market Sees Major Uptick as XRP Soars to Six-Year High
The cryptocurrency market is abuzz with excitement as XRP, the native token of the XRP Ledger network, reaches a six-year high. This surge is largely attributed to the highly-anticipated U.S. CPI inflation data report, which has boosted investor confidence.
XRP Outperforms Bitcoin and Ethereum
In early U.S. trading, XRP briefly topped $3, a level not seen since January 2018. Although it has since pared some of its gains, the token is still trading at $2.95, representing an 11% increase over the past 24 hours. This outpaces bitcoin’s 3.6% and the CoinDesk 20 Index’s 6.7% advances during the same period.
XRP’s Meteoric Rise
XRP has been one of the best-performing tokens, with a staggering 488% gain since Donald Trump’s election victory. It has now reclaimed its third ranking by market capitalization, surpassing Tether’s USDT stablecoin. With a market value of $170 billion, XRP is now larger than asset management giant BlackRock (BLK).
Driving Forces Behind the Surge
The gain is largely fueled by anticipation of crypto-friendly policies and an overhaul of digital asset regulation in the U.S. The Securities and Exchange Commission (SEC) and Ripple have been embroiled in a legal battle for years over XRP token sales. Additionally, the launch of Ripple’s stablecoin RLUSD and speculation about a potential spot XRP ETF have contributed to the surge.
Expert Insights
Diego Cardenas, OTC trader at digital asset platform Abra, notes that the surge is driven by a growing number of partnerships and speculation about a potential spot XRP ETF. Ripple President Monica Long expects a spot ETF to be approved “very soon” as approvals with the incoming administration will accelerate.
Technical Analysis
XRP has broken out of the consolidation pattern started in early December, paving the way for the next leg in the token’s rally. Another 15% rise from current prices would mean fresh all-time highs above the 2018 January top of $3.4. However, adjusting for inflation over the years, XRP has to surpass $4.24 for a new high.
Institutional Investors Fuel the Rally
Large investors have been accumulating XRP tokens over the past two months, which could further fuel the rally towards new records. Analytics firm Santiment notes that addresses holding between 1 million and 10 million tokens increased their holdings by 1.4 billion coins — worth roughly $3.8 billion — since November 12.
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