XRP stablecoins drive the rise of XRP, disrupting Solana and Tether.
XRP surged significantly due to increased institutional interest and Ripple's focus on addressing bank pain points.
While the price is overbought and may experience a correction, the long-term outlook remains bullish.
Ripple's upcoming stablecoin and ongoing innovations in cross-border payments may further drive the growth of XRP.
XRP has recently made waves, with its impressive value growth exciting the community. Ripple CEO Brad Garlinghouse shared strong insights regarding XRP's recent price surge, retweeting a post from Austin Reid, FalconX's Global Revenue Head. Reid claimed that 'XRP trading is booming' and noted that XRP's trading volume has increased tenfold from the first quarter to the second half of the year.
He also believes that the growth is driven not only by retail traders but that institutions play a key role in the rebound.
Although the legal dispute between Ripple and the SEC is ongoing, XRP's momentum remains strong. Garlinghouse's message indicates that the community spirit around XRP is as high as ever, and confidence in its future is growing by the day.
XRP is still unstoppable!
XRP's price has skyrocketed, increasing 117% in just one week, from $1.3 to a high of $2.8. Although the price dipped slightly by 24% on Tuesday, it quickly rebounded nearly 19%, currently hovering around $2.63. In just one month, XRP's market cap has grown by $100 billion, helping it surpass Solana and Tether to become the third-largest cryptocurrency by market cap.
Ripple's solutions for banking challenges.
Ripple's success is also attributed to its efforts to address real-world problems in the banking industry, especially in cross-border payments. The company recently highlighted six major challenges faced by banks, including high transfer costs, slow settlement times, and limited service channels.
Ripple claims its payment solutions provide a faster, cheaper, and more reliable alternative, helping banks overcome these issues while ensuring transaction security.
Large investors driving the surge in XRP's price.
One of the main reasons for the surge in XRP's price is the involvement of large investors. According to CryptoQuant CEO Ki Young Ju, XRP is trading at a premium of 3% to 13% on exchanges like Coinbase, indicating that large institutional investors are driving much of the price increase. Additionally, wallets holding between 1 million to 10 million XRP have been buying large amounts of tokens, acquiring 671 million XRP in just three weeks. This shows that people are flocking in, not wanting to miss out on the price rise.
Will XRP drop?
Despite the upward trend of XRP, its price may face a correction in the near future. The token's trading price is far above its short-term and long-term moving averages, which may indicate an impending correction. Key technical indicators such as the Relative Strength Index (RSI) and stochastic oscillators show overbought conditions, which often precede a price decline.
XRP may also be in the 'markup' phase of the Wyckoff method, where demand exceeds supply—usually followed by the 'distribution' phase that leads to sell-offs.
If a correction occurs, XRP could fall back to a support level of $1.9697, which has been in place since April 2021. However, strong momentum and growing institutional interest may continue to drive prices higher in the long term.
I believe XRP could reach $5 without issue during a bull market, and it could even hit $10 if the ETF is approved.