XRP skyrockets with a 10% surge in 24 hours, reaching $2.6 and overtaking USDT in market cap. Fueled by growing adoption and a positive legal landscape, could XRP soon hit $3? Key factors under scrutiny.
The price of XRP saw a remarkable 10% increase yesterday, reaching the level of $2.6. This spectacular rise allowed XRP to reclaim the 3rd spot in the ranking of the most important cryptocurrencies in terms of market capitalization, surpassing Tether’s USDT, whose market cap recently rose to $150 billion.
Analysts explain that the key level to watch is $2.69, which corresponds to the Fibonacci retracement level of 0.236 from XRP’s historical high at $3.84 set in January 2018. A clear break above this level could pave the way for a further rise towards $3, the highest level reached in 2018.
Moreover, several factors have contributed to the recent advancement of XRP, including favorable policy news and an expanded utility of the cryptocurrency. Among these, the Missouri House Bill 594 stands out, allowing full tax deductions on capital gains, including profits made on Bitcoin and XRP.
Furthermore, Ripple’s legal situation with the U.S. SEC seems to be clearing up, with the proposal of a $50 million settlement agreement in the ongoing lawsuit. This development could reduce uncertainty around XRP and bolster investor confidence.
Market data shows a significant increase in trading activity on XRP. Derivatives volume surged by 172%, reaching $18.95 billion, while open interest grew by 15.37%. These figures indicate that traders are actively placing bets on future XRP price movements.
For investors, this momentum can be viewed as a sign of sustained long-term interest rather than mere short-term speculation. With continued adoption and legal clarity, it could well continue its ascent towards $3 in the coming weeks.
The 12H FBB is tightening, indicating a strong move in the next few hours. In case of an upward continuation, XRP could reach $2.8 in the short term. Conversely, a bearish reversal could take it to $1.7 in the coming days or weeks.
Despite a bearish divergence forming with the RSI, the CMF indicates a bullish divergence with capital inflow that could allow this rally to continue in the short term.
The next resistances are at $2.96 and $3.2. While the supports to watch are at $1.69 and $1.33.
In conclusion, XRP is bullish in the short term. Despite a 8% drop yesterday, it rebounded by 3% today.
Monitoring technical indicators and Bitcoin’s trend will be necessary. But XRP could continue its rise in the next few hours.
To invest in XRP, here is a guide to get it on Bitget now:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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