Urooj NazirAfter a sharp increase, Ripple’s XRP is now the third-largest cryptocurrency in terms of market capitalization. A significant milestone for the digital asset was reached as XRP’s value surged in a $100 billion rally following recent court rulings and positive regulatory updates.
By regaining its position as the third-largest cryptocurrency by market capitalization, Ripple’s XRP has soared to incredible new heights. After years of legal disputes and market difficulties, this significant milestone marks the token’s spectacular comeback to prominence. Recently, XRP’s market capitalization overtook that of Tether (USDT) and Solana (SOL), solidifying its place as a major participant in the cryptocurrency market.
Tether’s market capitalization of $134.5 billion was surpassed by XRP’s $141.8 billion as of December 1, 2024. In just one day, the token’s price increased by 30%, and in the last month alone, it has increased by 364%.
Numerous variables, including Ripple’s ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), investor sentiment altering in expectation of regulatory changes, and the anticipated debut of Ripple’s RLUSD stablecoin, are cited by analysts as the reasons for this rise.
For XRP, this latest bounce comes after a lengthy period of consolidation. It had experienced a decline amid protracted legal challenges, especially with the SEC case started in December 2020, after years of being among the top cryptocurrencies by market capitalization. Now, with hopes for a resolution in the regulatory battle and renewed investor confidence, XRP has regained bullish momentum.
The market’s response to speculative rumours about Ripple’s RLUSD stablecoin was one of the main drivers of XRP’s recent price spike. The New York Department of Financial Services (NYDFS) may approve this new stablecoin, which is expected to improve Ripple’s standing in the cross-border payments market. The anticipated clearance might increase XRP’s usefulness in financial systems and mark a sea change in Ripple’s approach.
A notable rise in short liquidations has also been observed in market data, which supports the positive trend. Leveraged trading positions totalling more than $50 million were liquidated, of which $36 million came from short positions alone. These market swings frequently result in a short squeeze, forcing traders to repurchase their holdings and raising the price even more.
Throughout this time, Ripple has maintained stability by carefully managing its assets. It just released one billion XRP from its escrow account, then promptly locked back the remaining 800 million. Investors are reassured by this cautious management that Ripple is dedicated to preserving market equilibrium in spite of the significant price increase. Furthermore, XRP’s market strength has been influenced by whale behaviour. Big investors are actively removing XRP from exchanges, indicating that they are confident in the future performance of the cryptocurrency’s price. These transactions have increased noticeably on exchanges like Upbit and Binance, indicating substantial institutional investor backing.
Bullish momentum for XRP is also revealed by technical analysis. A multi-year consolidation pattern was just broken by its price, and it is now in a phase where it may test earlier all-time highs. The Relative Strength Index (RSI) has risen to its highest level since 2021, surpassing 85%. Strong buying pressure is indicated by this, suggesting that XRP may continue to rise in the foreseeable future.
Analysts warn caution, despite the fact that XRP’s recent rise represents investor optimism. These kinds of fast increases frequently result in price corrections, so investors should carefully consider the dangers. Nonetheless, investors have cause to be hopeful about XRP’s future due to a number of encouraging market events, strategic initiatives like the stablecoin launch, and advantageous regulatory prospects.
Ripple and XRP are entering a new era with this action. Investors and market analysts will keep a careful eye on their progress as they continue their legal struggle with the SEC. Furthermore, Ripple’s diversification of its products, which may include exchange-traded funds (ETFs) for XRP, has strengthened the cryptocurrency’s position for widespread acceptance.
Holders of XRP are currently keeping a careful eye on the cryptocurrency as its momentum keeps growing. In the upcoming months, XRP may reposition itself in the larger cryptocurrency market as a result of the surge being fuelled by altering market mood, Ripple’s strategic moves, and legal confidence.
