In a stunning display of bullish momentum, XRP, the native token of the XRP Ledger network closely tied to Ripple, has surged to its highest level in nearly seven years. The explosive move comes as the crypto market leader, bitcoin (BTC), briefly eclipsed the momentous $100,000 mark, igniting a broad-based rally across the digital asset spectrum.
XRP Leads the Charge as Crypto Market Sizzles
As the US inflation data hit the wires this morning, XRP wasted no time in catapulting itself to the forefront of the crypto surge. The token’s blistering 11% gain over the past 24 hours outshone even bitcoin’s impressive 3.6% uptick and the broad market’s 6.7% advance, as measured by the CoinDesk 20 Index.
This explosive upward trajectory propelled XRP to briefly touch the $3 mark for the first time since the heady days of the early 2018 crypto boom. Although it has since pared some of those gains, XRP’s current trading price of around $2.95 still represents a staggering 488% increase since Donald Trump’s election victory set the stage for a more crypto-friendly regulatory environment in the United States.
XRP Reclaims Third Spot in Crypto Rankings
XRP’s meteoric ascent has vaulted it back into the coveted position of the third-largest cryptocurrency by market capitalization, supplanting the dollar-pegged stablecoin tether (USDT) and trailing only bitcoin and ethereum. Astonishingly, XRP’s market value has now surpassed that of the venerable asset management titan BlackRock.
“This surge is driven by a growing number of partnerships, the launch of Ripple’s stablecoin RLUSD, and speculation about a potential spot XRP ETF,” noted Diego Cardenas, an OTC trader at digital asset platform Abra.
Indeed, Ripple President Monica Long recently stoked the flames of anticipation, asserting that she expects a spot XRP ETF to secure approval “very soon” as the regulatory landscape shifts under the incoming crypto-friendly administration.
Technical Breakout Paves the Way for New All-Time Highs
From a technical perspective, XRP’s impressive surge also marks a decisive breakout from the consolidation pattern that had contained the token’s price action since its early December highs. This bullish resolution opens the door for XRP to potentially challenge and surpass its January 2018 all-time high of $3.40.
However, as Galaxy head of research Alex Thorn pointed out, when accounting for inflation over the intervening years, XRP would need to rally another 40% from current levels and clear the $4.24 hurdle to achieve a new inflation-adjusted record.
Whales Accumulate as XRP Consolidates
Supporting the bullish case for XRP, on-chain data from analytics firm Santiment reveals that large token holders, often referred to as whales, have been steadily accumulating XRP during its multi-month consolidation. Addresses holding between 1 million and 10 million XRP have collectively added a staggering 1.4 billion tokens, worth nearly $4 billion at current prices, to their holdings since mid-November.
This substantial increase in whale holdings, even as prices traded sideways, can be interpreted as a signal of strong conviction in XRP’s long-term prospects and may provide an additional tailwind for the token’s ongoing rally.
Ripple’s Legal Battle and the Road Ahead
Of course, no discussion of XRP’s prospects would be complete without addressing the legal battle that has loomed over Ripple and its affiliated token for years. The SEC’s allegations that XRP constitutes an unregistered security have cast a long shadow, but the tide may be turning.
With a new administration poised to reshape the regulatory landscape and growing speculation about a potential settlement between Ripple and the SEC, the resolution of this legal overhang could further supercharge XRP’s trajectory.
As the crypto market’s ongoing resurgence lifts bitcoin to unprecedented heights and fuels breakouts in tokens like XRP, it is clear that the digital asset space has entered a new era. With whales accumulating, partnerships proliferating, and the prospect of a spot ETF on the horizon, XRP appears poised to play a leading role in this unfolding narrative. Though challenges remain, for XRP and its legions of passionate supporters, the future has perhaps never looked brighter.
