XRP reached a price not seen since November 2021.
The price is 70% below its all-time high of $3.84.
XRP, the cryptocurrency issued by Ripple Labs, returned to trading above $1 after 3 years. The recent rise renewed the enthusiasm of its community, which is now debating how much more its price could increase.
Thanks to this good performance, XRP once again positioned itself in sixth place on the cryptocurrency list with higher market capitalization, displacing dogecoin (DOGE).
In that framework, Santiment, a market analysis firmexplained that the rise in the price of the digital currency is due to massive accumulation by “whales and sharks”. That term is used in trading to refer to investors who have between 1 million and 100 million tokens.
According to your analysis, They have already collectively accumulated more than 453 million XRPthe equivalent of more than 526 million dollars.
Likewise, Santiment highlights that the fact that retail investors got rid of their holdings with the aim of generating quick profits had an influence. According to the firm’s data, wallets with less than 1 million XRP sold more than 75 million tokens, valued at $87 million.
During the last week, The price of the digital asset rose almost 60% and climbed to $1.21. At the time of publishing this note, the price of XRP is $1.09.
Beyond this rally, the reality is that XRP is 71% below its all-time high (ATH) of $3.84 reached in January 2018.
For some specialists, that gap could be reduced If the price of the cryptocurrency manages to overcome a resistance zone.
The digital asset market analyst, known as Goomba on He also noted that “a transformation to a bullish flag is acceptable” but warned: “Anything else says that this is not a bull run”.
The post is accompanied with a graph where the formation of a bullish pennant in the XRP price.
In technical analysis, a bullish pennant is a pattern indicating a period of consolidation or pause within an uptrend. Generally, It is interpreted as a sign of continuation of the upward trendsince it is formed after a strong bullish movement, which would be the flagpole.
For its part, for the trader who presents himself as Chipolinothe fact that “XRP is currently holding in the range of $1 to $1.20 is a good sign of consolidation.” Furthermore, he adds: “At the end of this week or the beginning of next, I expect a break towards the $1.30 to $1.50 area.”
In the chart you share, you can see that the price of XRP is in a consolidation range (area colored green) that could be anticipating an upward movement (red arrow).
These defined limits are support and resistance zones.. As explained in Criptopedia, educational section of CriptoNoticias, resistance is a price level that an asset cannot easily overcome due to market psychology factors. What happens is that traders consider that the price of the digital currency, in this case XRP, is high and that is why they choose to sell it.
For its part, it must be explained that, in terms of technical analysis, support is a type of floor that the price of an asset collides with to rebound parabolically or stabilize.
Be careful with so much optimism
On the social network redditseveral users expressed their enthusiasm for the rise of XRP but clarified that there is still a long way to go to return to being the second most valuable cryptocurrency on the market.
Although some members of The forums indicated that it will not take long to recover that placewe must keep in mind that it is not such a simple question.
Today, ether (ETH), the native cryptocurrency of the Ethereum ecosystem, is the second most valuable digital asset with a market capitalization of more than $377 billion.
For XRP to regain that position, its price should be 6.73 dollars. In other words, there is still a long way to go, especially considering price fluctuations in a market as volatile as this one.
As Santiment explains, the tendency of a cryptocurrency to grow in market capitalization “has been observed when its main shareholders increase their holdings and confidence in the asset, while fear, uncertainty and doubt (FUD) among small investors drives this trend even further.”
For this reason, it is important to be aware of these exaggerated predictions without proper analysis. In this regard, Dominican analyst Érika Espinal warns that “there are those who say that XRP can reach 10 or 12 dollars, or that Solana will reach 2,000 dollars in this bullish cycle.” Furthermore, he says “these figures are very unlikely,” so he recommends being “careful with such high expectations to avoid frustration.”
The future of XRP
Beyond the opinions of specialists, we must not lose sight of the fact that Donald Trump’s victory in the United States elections boosted the cryptocurrency market.
As CriptoNoticias has reported, the Republican leader expressed his support for the sector and promised friendly regulation to promote the growth of the industry.
Likewise, something that may favor the future of XRP is the possible departure of the head of the Securities and Exchange Commission of that country (SEC), Gary Gensler. During his administration, the official in charge of the regulatory entity had a persecutory attitude against cryptocurrenciesand Ripple Labs was no exception.
The firm led by Brad Garlinghouse still has a legal dispute with the SEC for trading XRP through exchanges. For the organization, it is an unregistered security (security) and that is why its sale is prohibited.
Without Gensler at the helm of the SEC, The case could have a favorable resolution for Ripple Labswhich could boost the price of the currency it issues.
Additionally, this would pave the way for asset management firms 21Shares, Canary Capital and Bitwise, which have recently requested approval to list an XRP-based exchange-traded fund (ETF).
Last but not least, Ripple Labs continues to promote educational projects and It even develops its RLUSD stablecoin.
