Ripple’s XRP has claimed the spotlight by becoming the third-largest cryptocurrency by market capitalisation, surpassing Solana and Tether for the first time in this market cycle.
On December 1st, XRP’s market cap soared to over $136.41 billion, marking a milestone for the digital asset. The token’s remarkable ascent underscores its growing dominance in the crypto market.
XRP’s Price Action
XRP’s price has been bullish. Beginning its rally on November 10, the token peaked at $2.19 on December 1st, a seven-year high. It has since surged further, trading at $2.40 at the time of writing, representing a staggering 30% increase in the past 24 hours. This growth highlights XRP’s strong market sentiment and renewed investor interest.
Why is XRP so Bullish?
Several factors have contributed to XRP’s recent performance. Analysts point to Ripple Labs’ strategic moves, including the development of new products and the expansion of key partnerships.
The anticipation of an XRP exchange-traded fund (ETF) in the United States has also fueled optimism among investors. Additionally, unconfirmed rumours suggesting Elon Musk might invest heavily in Ripple and XRP have added to the token’s allure.
Adding to the excitement is the possibility of regulatory approval for Ripple’s RLUSD stablecoin. Reports indicate that the New York Department of Financial Services (NYDFS) may soon greenlight RLUSD, with Ripple aiming for a December 4 launch.
If approved, Ripple will gain access to New York’s stringent digital finance market, significantly enhancing its reputation within the stablecoin ecosystem. RLUSD could make Ripple a strong competitor in market of stablecoins.
XRP’s Performance after the U.S. Elections
XRP’s surge also coincides with broader market dynamics. Republican wins in the U.S. elections in November boosted confidence in U.S.-based cryptocurrencies like XRP, further driving demand.
This political shift has reignited hopes for a more favourable regulatory landscape, particularly for Ripple Labs, which has faced legal challenges in the past.
Technical analysis indicates that XRP is approaching a crucial resistance level. If the token breaks through this barrier, it could pave the way for further price rallies. However, historical trends suggest that such moments often lead to either explosive growth or sharp corrections, keeping traders on high alert.
A well-known crypto expert recently expressed bullish sentiments about XRP, forecasting a target price of XRP staying firmly at $2. This optimistic outlook reflects growing confidence in Ripple’s potential to capitalize on market opportunities and cement its position among leading cryptocurrencies.
As the market anticipates Ripple’s next moves, XRP’s performance remains a focal point for investors and traders alike. With regulatory advancements, innovative products, and rising market sentiment, Ripple’s journey promises to reshape the cryptocurrency landscape in the coming months.