With the current positive news surrounding XRP, the prevailing sentiment, and the increased participation of crypto whales, it is expected that the price will continue to rise.
XRP’s market capitalization has surged to $36 billion, coming close to Binance Smart Chain (BNB), which boasts a market capitalization of $37 billion. This achievement followed a major price spike that propelled the price to $0.68.
XRP’s 22% increase in the last seven days indicates that it outperformed the other top 5 cryptocurrencies, with Bitcoin only gaining 1%, Ethereum 3%, and Binance Coin 7%. This significant uptrend did not come as a surprise to many market observers and investors, as technical analysis experts had been anticipating this move. Bullish chart signals, combined with positive developments impacting overall market sentiment towards XRP, contributed to this impressive performance.
However, it’s worth noting that XRP is still a considerable distance away from its yearly high of $0.95, which it reached in July. The increase was a result of a partial legal victory for Ripple when Judge Torres ruled that the company’s sale of XRP did not qualify as a security. Shortly after the spike, the price retraced, erasing most of its gains from the legal victory. It found support at $0.48 before embarking on a gradual but steady recovery. The price encountered significant resistance at $0.62 for most of last week before successfully closing well above this level at the week’s end. The closing price of approximately $0.66 marked the first time XRP had reached that point since July. Presently at $0.68, it has surged by 22% over the past week and 9% today.
Possible Drivers of the XRP Price Surge
The price surge can be attributed to a series of positive events that have fostered a more optimistic outlook for the cryptocurrency. In addition to the legal victory against the SEC in July, Ripple has entered into several collaborations to bolster its regulatory standing and has continued to earn investors’ trust. Recently, the financial authority in Dubai granted approvals for companies within its jurisdiction to use XRP as a form of payment. The SEC also dropped its case against Ripple’s founder and CEO, alleviating a major legal burden on the company.
🥳 #XRPLedger is at it again, reaching a market value north of $0.68 for the first time since August 2nd. The 3-month high happened as $XRP moved up +23% against $BTC in just the past week. Wallets with 100K-1B $XRP now hold their highest level in 2023. https://t.co/v5wlgIQAhh pic.twitter.com/hvZbZ8S1UG
— Santiment (@santimentfeed) November 6, 2023
The increase in whale activity within the crypto space has also played a significant role in driving up prices. Data from Santiment, an on-chain analytics firm, shows that wallets holding between $100k to $1 billion now hold their highest levels since October. This indicates growing institutional interest in cryptocurrency, which tends to influence price movements significantly.
Positive Sentiment Can Keep Pushing XRP Upward
With the current positive news surrounding XRP, the prevailing sentiment, and the increased participation of crypto whales, it is expected that the price will continue to rise, potentially after a minor retracement. Prices could approach or surpass the year’s high reached in July if XRP maintains its upward momentum. Such developments could also impact XRP’s market capitalization ranking, potentially overtaking its closest rival in terms of market cap BNB.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.