- XRP price soars 30%, reaching $2.43, with a market cap of $138.78 billion.
- Analysts anticipate XRP retesting its all-time high of $3.40.
XRP has surpassed Tether (USDT) and Solana (SOL), becoming the third-largest cryptocurrency by market capitalization. The native token of Ripple Labs reached $2.46 on December 2, marking a 30% daily increase and a staggering 375% rise over the last 30 days. XRP’s market cap soared to $138.78 billion, bolstered by a 24-hour trading volume of $27.38 billion, primarily led by South Korea’s Upbit exchange.
Several factors contributed to XRP’s remarkable ascent. Investor confidence has surged following the announcement that SEC Chair Gary Gensler will step down in January 2025. Optimism about reduced regulatory hurdles has grown, especially as Ripple’s legal fight with the SEC appears to be shifting in its favour. Analysts predict a more lenient regulatory environment.
In addition, news of Ripple’s RLUSD stablecoin gaining potential approval from the New York Department of Financial Services (NYDFS) has further strengthened market sentiment. Ripple is targeting a December 4 launch for RLUSD, positioning it as a stablecoin competitor to USDT and USDC.
Technical Analysis of XRP’s Price Action
XRP broke key resistance levels during its rally. Its 50-day moving average crossed above the 200-day moving average, signalling a golden cross and indicating bullish momentum. The next resistance lies at $2.70, with strong support at $2.20.
The Relative Strength Index (RSI) surged above 85, signalling overbought conditions. While this hints at a possible correction, bullish traders anticipate continuing toward the 2018 all-time high of $3.40. If XRP breaks the $2.70 resistance, analysts project it could reach $3.00 in the short term.
Ripple’s partnerships with financial institutions and innovations like RLUSD highlight its utility. Moreover, speculation around the approval of XRP ETFs has added to investor optimism. Institutional demand and broader adoption could solidify XRP’s position as a key player in the crypto market.
However, risks remain. Speculative trading, overbought technical indicators, and regulatory uncertainties could impact sustainability. A potential short squeeze has already liquidated $50 million in leveraged positions, mostly from short traders.
XRP’s resurgence marks a significant milestone in the crypto market. Positive regulatory shifts, new product launches, and favourable technical signals drive its momentum. While challenges persist, XRP’s strong fundamentals and institutional backing make it a contender for future growth.
Highlighted Crypto News Today
New Report Highlights Stablecoins Could Capture 10% of US Dollar Supply
