Ripple’s XRP Surges Over 27% to Become Third Largest Cryptocurrency
After a significant bullish breakout in November, XRP, supported by Ripple Labs, started December 2024 with a positive outlook. The altcoin surged over 280 percent in November, approaching its all-time high (ATH).
Current market data shows that XRP's price increased by over 27 percent in the last 24 hours, trading above $2.4 on December 2. This rally has pushed XRP above its 2021 peak, indicating bullish control.
XRP now holds a fully diluted valuation exceeding $243 billion and average daily trading volume around $34 billion, making it the third largest cryptocurrency, surpassing Solana, Tether’s USDT, and Binance Coin.
Major Factors Influencing the XRP Price Rally
XRP's recent performance has been bolstered by pro-crypto leadership in the U.S., led by President-elect Donald Trump. The ongoing SEC vs Ripple lawsuit has previously posed challenges to XRP's growth.
With anticipated changes in the U.S. SEC, including potential resignation of Gary Gensler, the Ripple community expects resolution of these legal issues soon.
Demand for XRP from FOMO traders and institutional investors is expected to remain strong. On-chain analysis from Santiment indicates wallets holding between 1M and 10M XRPs added over 679 million units in three weeks.
🚀 XRP has skyrocketed to an astounding $2.49 market value for the first time since January 8, 2018. The 6-year (nearly 7-year) high comes as wallets with 1M-10M XRP have accumulated 679.1M tokens (currently worth $1.66B) in just 3 weeks. Also, total non-empty XRP wallets have… pic.twitter.com/bIsfOqdCQX
— Santiment (@santimentfeed) December 2, 2024
In the past 24 hours, several whales withdrew large amounts of XRPs from exchanges like Binance and Upbit. Additionally, Ripple unlocked 1 billion XRP from escrow but returned nearly 800 million units.
The rise in XRP is also linked to developments within the XRPL, particularly the upcoming launch of the native stablecoin RLUSD, aimed at enhancing cross-border payment capabilities.
What’s Next?
XRP has broken out of a symmetrical triangular pattern for the first time in over 80 months, indicating a bullish trend. Increased demand from whale investors and retail traders has led to the XRP/BTC pair retesting a crucial resistance level, potentially leading to a stronger parabolic rally.
— Peter Brandt (@PeterLBrandt) December 1, 2024
From a technical analysis perspective, XRP may experience short-term corrections to stabilize the market. The weekly and monthly Relative Strength Indexes (RSI) have risen above 85% and 70%, respectively, marking notable levels not seen in years.