XRP Surges Over 20% to Become Fifth-Largest Cryptocurrency by Market Cap
XRP surged over 20% on Friday, outperforming Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This increase has elevated XRP to the fifth-largest cryptocurrency by market capitalization, exceeding $107 billion.
As of the latest trading data, XRP is priced at $1.87, reflecting a 99% increase over the past two weeks. This performance has allowed XRP to surpass Binance Coin (BNB) in market capitalization, indicating renewed investor interest.
XRP Breaks Free From Three-Year Stagnation
The rally marks a significant turnaround for XRP, which had been consolidating between $0.30 and $0.60 for nearly three years. This stagnation was largely due to the end of the 2021 bull run and the legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC).
The SEC's classification of XRP as an "unregistered security" created substantial uncertainty for investors, particularly in the US, impacting the token's market performance. Recent political developments have contributed to renewed confidence among crypto investors.
Following Donald Trump’s victory on November 5, the cryptocurrency market saw recovery, with Bitcoin reaching a new all-time high of $99,540.
Trump's promises to overhaul regulatory frameworks, including the dismissal of SEC Chair Gary Gensler on his first day in office, have further fueled optimism. Gensler announced his departure from the agency effective January 20, coinciding with the presidential inauguration, raising hopes for a resolution to the legal dispute between Ripple and the SEC.
This potential resolution could lead to increased investment in XRP and the introduction of new investment products, such as exchange-traded funds (ETFs) focused on the token, with several asset managers having filed applications.
New Price Targets And Support Levels
Crypto analyst DarkDefender noted that XRP has broken through a critical resistance level at $1.44. He outlined new targets for XRP, including $3.4176 and $11.3233, while revisiting historical targets of $5.85 and $18.22. New support levels are identified at $1.44, $1.28, $1.14, and $1.03.
The 4-hour chart indicates a new market structure for XRP, with expectations of reaching $2.13 before any corrections. Resistance levels are identified at $4.11 and $6.42, aligning with the main target of $5.85 following the anticipated move above $1.88.
Featured image from DALL-E, chart from TradingView.com