Ripple News: Why is XRP Price Soaring Today?
As the market eagerly awaited the FOMC statement, XRP, strongly supported by Ripple Labs, saw a notable surge in price. With a market cap of approximately $65 billion and a daily trading volume of around $3 billion, the large-cap altcoin experienced an impressive 8 percent rally in the last 24 hours, reaching a 24-hour high of about $0.657.
This price surge allowed XRP to reclaim its position as the sixth largest cryptocurrency by market cap, surpassing Circle-backed USDC in the rankings.
One of the key factors driving this surge in XRP’s price is the growing demand for the cryptocurrency. On-chain data provided by Santiment reveals that large entities have been accelerating their accumulation of XRP. The number of wallets holding at least 10,000 XRP has skyrocketed to a six-month high of approximately 279,400 accounts. This surge in accounts with significant XRP holdings indicates a strong correlation between these wallets and the market value of XRP.
Furthermore, in the past five weeks alone, 2,389 XRPL accounts have joined the ranks of “shark” wallets, holding more than 10,000 XRP units. Additionally, accounts with over 100,000 XRP units have experienced remarkable growth in recent times.
The recent growth of XRP can primarily be attributed to Ripple Labs’ improved fundamentals in the Web3 sector. Ripple developers have enhanced the XRPL (XRP Ledger) to attract more decentralized finance (DeFi) projects from around the world. Noteworthy developments include the launch of a native XRPL decentralized exchange (DEX), automated market maker (AMM), and an Ethereum Virtual Machine (EVM)-compatible sidechain. Ripple also plans to introduce its U.S. dollar-backed stablecoin on both the XRPL and Ethereum networks, partnering with entities such as ClearBank and Zero Hash to ensure a smooth launch of the RLUSD stablecoin.
Furthermore, there is anticipation that the Ripple vs. SEC legal case may soon reach a settlement, following the SEC dropping most of its investigations against various crypto projects. A potential resolution in this case could have a significant impact on XRP’s future.
From a technical standpoint, the XRP price is currently on the verge of testing this year’s high of around 75 cents. A consistent close above 66 cents in the coming weeks will likely lead to a retest of this high. This optimistic outlook is further reinforced by the breakout of the weekly Relative Strength Index (RSI) from a falling trend. Moreover, the XRP price has consistently closed above the 50 and 200 daily Moving Averages (MAs) in recent times, adding to the bullish sentiment.
In the event of a potential crypto market downturn, the XRP price is anticipated to find robust support between the 54 cents and 50 cents range.