XRP (XRP-USD) has made a remarkable leap forward, overtaking Tether (USDT-USD) to become the third-largest cryptocurrency by market capitalization. This surge in XRP prices comes as Bitcoin faces a major hurdle at the $100,000 level, with a huge “selling wall” preventing further momentum for the major cryptocurrency. A sell wall refers to a large stack of sell orders at a particular price point, which acts as a barrier to prevent the price from rising.
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XRP surpasses Tether in market capitalization
XRP has seen an incredible surge, gaining over 18% in just 24 hours. This dramatic rise brought XRP's market capitalization to $139 billion, surpassing Tether, which had long held the third-largest spot among cryptocurrencies. The price of XRP has surged 375% in the past 30 days, hitting $2.40, a level not seen in years.
The soaring XRP price has caused significant activity in the global market. For example, South Korea's Upbit exchange recorded a huge XRP trading volume of $4 billion in one day, demonstrating the growing interest in cryptocurrencies.
Retail traders drive XRP resurgence
Retail traders appear to be playing a key role in XRP's recent resurgence. Coinstash co-founder Mena Theodorou told CoinDesk: [XRP] The comeback is sending ripples throughout the market and could signal the return of retail traders and investors to the crypto market. ” Theodore highlighted the growing presence of XRP on platforms such as TikTok, which is contributing to the token's growing popularity among young traders.
Rumors about the possible approval of Ripple's stablecoin and the possibility of an XRP ETF are also increasing investor interest. As a result, XRP has emerged as an important altcoin for investors seeking an alternative to Bitcoin.
Regulatory news drives XRP price surge
In addition to retailer interest, regulatory news also contributed to XRP's rise. Markus Thielen, founder of 10x Research, pointed out to Cointelegraph that South Korea’s postponement of crypto capital gains tax is helping to create an environment that fosters speculative trading. The tax was originally set for 2021, but was delayed until 2027, removing a major regulatory hurdle. According to Thielen, this delay “removes a significant hurdle to the crypto market” and is driving XRP's recent surge.
Bitcoin struggles with $100,000 sell-off wall
While XRP is soaring, Bitcoin faces tough challenges. Bitcoin has struggled to break through the $100,000 threshold and has encountered a huge sell wall worth $384 million at that price level. This resistance prevented Bitcoin from gaining any upward momentum despite strong market catalysts and growing investor confidence.
“Despite strong market catalysts and growing investor confidence, Bitcoin continues to struggle with the $100,000 psychological barrier,” BRN analyst Valentin Fournier told CoinDesk. spoke. Fournier explained that this sell wall, consisting of sell orders of over 4,000 BTC, is pushing down the price of Bitcoin and acting as a bottleneck for price fluctuations.
XRP benefits from Bitcoin's struggles
As Bitcoin struggles to break above the $100,000 level, investors are moving their funds to altcoins, and XRP is benefiting from this trend. Bitcoin's market power has fallen from 61.5% to 56.5% since November 21, reflecting increased interest in alternative cryptocurrencies. As Bitcoin's dominance wanes, XRP has been one of the key beneficiaries, capitalizing on the shift of investors to altcoins.
This trend of capital turnover is further evidenced by the rise in XRP as the cryptocurrency outpaces Bitcoin as traders seek opportunities to outperform the world's largest crypto asset.
At the time of writing, XRP is trading at $2.2644, up over 18% in the past 24 hours.
