XRP Price Surges 15%, Overtakes Tether as Third-Largest Crypto at $138.4B

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous bull runs and bear markets, but none quite like the one we are currently witnessing in the cryptocurrency space. The recent rally of Bitcoin above $97k and XRP‘s surge to reclaim its position as the third most valuable digital asset is a testament to the rapid growth and evolution of this industry.

My personal experience tells me that such rallies are often fueled by a combination of factors, including regulatory clarity, institutional interest, and market sentiment. In this case, the recent re-election of President-elect Donald Trump, who has been vocal about his support for cryptocurrencies, and the nomination of Paul Atkins as the next US SEC Chair, who is expected to be more crypto-friendly, are likely playing a significant role in driving the current bull run.

Moreover, the ruling that XRP sales on crypto exchanges do not constitute investment contracts, thus not a security, has undoubtedly added to the positive sentiment around XRP. This, coupled with the influx of whale and institutional investors seeking to diversify their portfolios, suggests that XRP is well positioned for continued growth in the coming months.

From a technical analysis standpoint, XRP’s rebound from the 50-day Moving Average and its bullish breakout from the 2021 ATH, as well as its formation of a symmetrical descending triangle, all point to a potential bull rally towards its all-time high in the near term.

Lastly, let me leave you with a little humor – it seems that XRP is not just a digital asset anymore, but also a time machine! With its ability to take us back to its ATH and beyond, I can’t help but wonder if we should start calling it “XRP-temporal” instead.

On January 2nd, 2025, Bitcoin’s price soared past $97k for the first time that year, while Ripple Labs’ XRP also increased, regaining its position as the third most valuable digital asset by market cap. With a fully diluted valuation of approximately $240 billion and an average 24-hour traded volume of around $10 billion, XRP saw a rise of over 14%, trading at around $2.43 at the time of this report.

As a result, XRP surpassed Tether’s USDT to claim the position of the third largest digital asset by market capitalization. With a 24-hour trading volume of $52.62 billion and a market cap of $137.28 billion, it currently leads Tether by more than $400 million. The recent recovery of XRP above the critical support level of $2 suggests a possible bullish trend that could potentially push its price towards its all-time high in the short term.

In the last month, the value of XRP has returned to test the bullish surge beyond its 2021 all-time high. Moreover, this utility-centric cryptocurrency has been shaping a symmetrical descending triangle pattern, which historically precedes a strong upward trend.

Looking at technical analysis, the value of XRP has remained elevated on a weekly basis since early November 2024. The Relative Strength Index (RSI) has stayed persistently above 70%, indicating strong upward momentum. After bouncing back from its 50-day Moving Average (MA), a continuous close above the descending logarithmic trend line would signal a potential surge in XRP’s price, leading to further exploration of new highs.

Top Reasons Why XRP Price Rallied Today

Previously mentioned by Coinspeaker, the ongoing XRP price surge is significantly influenced by the re-election of President-elect Donald Trump, as well as other US leaders favorable to cryptocurrencies. Furthermore, Trump has hinted at the United States taking a leading role in the crypto industry by implementing clearer and more encouraging regulations.

The appointment of Paul Atkins as the potential new US SEC Chair, replacing Gary Gensler, stirs excitement within the XRP community, who believe the ongoing legal case may be resolved swiftly. Previous court rulings have established that transactions involving XRP on cryptocurrency exchanges are not considered investment contracts, thereby classifying XRP as a non-security asset.

As someone who has been closely following the cryptocurrency market for several years now, I have noticed a growing trend among investors seeking to diversify their portfolios. In the past two months, I’ve observed a significant surge in interest towards XRP, particularly from whale and institutional investors. Based on my analysis of on-chain data provided by Santiment, it appears that these larger investors have been accumulating XRP, with a balance of between 100 million and 1 billion coins, adding approximately 360 million coins in the past two days alone. This trend underscores the potential for XRP to become an increasingly important player in the crypto market, as more and more investors recognize its unique features and benefits. As someone who has witnessed the rise and fall of various cryptocurrencies over the years, I believe that this increased attention from whales and institutions could signal a bullish future for XRP, making it an exciting investment opportunity to keep an eye on.

In the upcoming altseason, predicted when Bitcoin’s dominance starts declining over longer periods, Ripple (XRP) looks poised to maintain its upward trend for the next few months, keeping a positive market outlook.

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2025-01-03 00:21