Cripto Crush
According to crypto analysts, the surge in XRP’s price is partly fueled by increasing speculation surrounding the potential launch of a spot XRP ETF
You should know:
- XRP Network Leads Crypto Rally: XRP gained 11% over the past 24 hours, as the crypto market rallied as Bitcoin briefly surpassed the $100,000 mark.
- Third Largest Cryptocurrency: The token reclaimed its position as the third-largest cryptocurrency by market capitalization, surpassing leading asset management firms such as BlackRock.
- Mass Accumulation: Large token holders increased their XRP holdings by $1.4 billion over the past two months, worth about $3.8 billion, as they continue to accumulate based on native consolidation.
- Six-Year Highest Star: XRP, the native token of the XRP Ledger network, reached a six-year high on Wednesday, coinciding with Bitcoin hitting $100,000.
- Memecoin’s inflows on the XRP ledger continue the trend that began in early December, when networks saw record-breaking account activations and transactions.
- While Memecoin’s inflows rose early, many military-like people experienced a sharp decline, which fell from a $100 million market cap to just $20 million on December 1.
With the increase in XRP, meme has once again caught speed, now it has reached close to its all-time high price of $3.40, which is just 12% away.
- This rally may get support from big investors who have been accumulating XRP over the past two months. According to Analytic Firm sentiment, shares holding 1 million to 10 million XRP tokens have increased their holdings by 1.4 billion since November 12, worth around $3.8 billion, which continues to accumulate despite the high level in early December.
- XRP has also broken out of the consolidation pattern that began in early December, setting the stage for the next leg of the token’s rally, Omkar Godabole, CoinDesk market analyst, noted. A further 15% rise from current levels could see XRP reach a new all-time high, surpassing the January 2018 peak of $3.40. However, after adjusting for inflation, Researchers said XRP would need to exceed $4.24 for a new record.
- Diego Cardenas, a top trader at the digital asset platform Abara, said in a note to Coindesk, “This significant growth is being fueled by a large number of partnerships, the launch of Ripple’s stablecoin result and significant developments in the potential spot XRP AITF.” Ripple President Monica Long also mentioned in an interview last week that she expects to get approval for the spot AITF “very soon” and that getting approval from the incoming administration will speed up the process.
Key information:
Investor confidence: An increase in holdings by large investors indicates whether they expect continued growth or believe in the long-term value of the assets. This can encourage retail investors to do the same, potentially leading to faster growth in the sector.
Technical analysis implications: A break in the structure is a sign of faster growth, especially if confirmed with a sustained amount. A 15% increase could serve as the next milestone, which could attract further investment.
Money-Growth Ratio: Monetary policy adjustments are important for monetary policy compared to historical figures. While crossing $3.40 would be important, reaching $4.24 would be a true record, which would likely attract media and investors’ attention.
Potential Risks:
Market Instability: Cryptocurrency markets are extremely volatile, and a breakdown could face opposition or reform along the way.
Micro Factors: External economic or regulatory factors could impact XRP’s performance.
Profit-Loss: Some investors may sell after reaching a certain profit limit, which could potentially slow or reverse momentum.
Suggested Steps:
- Monitor trading volumes: Make sure the breakout is supported by high trading volumes.
- Track wheel activity: Watch for any significant changes in holdings by large investors.
- Track the millstones: Watch the $3.40 and $4.24 stars as these are key psychological and technical points.
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