Ripple's cap rises to $108.2 billion, regaining 5th place XRP rises 21.08% to record 3-year high
In the past 24 hours, Ripple has [XRP] It has achieved one of the biggest comebacks in the recent history of cryptocurrencies. For the first time since 2018, XRP market capitalization breaks through the $100 billion barrier and surpasses Binance Coin. [BNB].
According to CoinMarketCap, XRP's market capitalization surged 21.38% in the past day to $108.22 billion. This increase propelled the altcoin to fifth place in terms of market capitalization.
In 2018, XRP price rose to set an all-time high of $3.13, with a market capitalization of $120.76 billion. Interestingly, the recent uptrend raises questions about what is driving Ripple's upward trend and whether Ripple will maintain its 5th position.
Factors influencing XRP market capitalization
According to AMBCrypto's analysis, one of the factors driving this surge is the changing political environment in the United States. Since the election of Donald Trump, altcoins have experienced a sustained uptrend as he promised to fire the current SEC Chairman.
Gary Gensler announced his intention to resign with the inauguration of the new administration. Speculation is growing that the SEC will drop the Ripple lawsuit with the new administration.
The altcoin was about to drop out of the top 10 from second place when the SEC started filing a number of lawsuits against Ripple. Therefore, with speculation about better crypto policies, Ripple investors are bullish and expect further gains.
Therefore, if this speculation turns out to be true and the legal issues are resolved, Ripple's XRP will maintain its 5th place. Similarly, it is likely to surpass Solana, which has struggled to recover over the past year.
Can XRP finally see a sustained rise?
No doubt, XRP is experiencing bullish sentiment with strong upward momentum.
Source: Tradingview
This bullish stance is evidenced by strong buying pressure. As of this writing, the Stoch RSI has made a bullish crossover 48 hours ago, indicating that buyers are now in full control.
Source: Coin Glass
This advantage among buyers is further supported by a surge in open interest (OI). According to Coinglass, XRP futures OI soared to an all-time high of $3.19 billion.
If OI increases, it means that investors are opening new positions while maintaining existing positions.
Source: Santiment
Additionally, Ripple’s stock-to-flow balance has turned negative at -221.57k, indicating that there are more outflows than inflows from the exchange.
This means more traders are moving their assets away from exchanges and into private wallets in connection with hoarding activity.
Source: Cryptocurrency
This hoarding behavior is especially observed among whales. According to Cryptoquant, flows from Whale to Exchange decreased from 15.8k to 1.4k. This confirms our previous observation that investors are moving assets away from exchanges.
What’s next for altcoins?
In fact, at the time of this writing, XRP is trading at $1.89, marking a 21.08% increase over the past day.
Similarly, the altcoin rose on the weekly and monthly charts, gaining 22.12% and 262.29% respectively.
Source: Santiment
Despite the rally, XRP was still 50.94% below its all-time high of $3.84 set seven years ago. This suggests that the altcoin has room to grow and may be undervalued. Circulating NVT decreased from 1353 to 109, indicating this underestimation.
Read XRP Price Prediction 2024-2025
Therefore, these situations could push XRP further up on the price chart. If this momentum holds, after breaking the $1.6 resistance level, XRP will find the next resistance near $2.1.
Next: HBAR’s next rally – can the altcoin cross $0.188 on the chart?
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