The XRP exchange rate rose 5.55% to hit an intraday high of $0.526. Meanwhile, the broader cryptocurrency market saw a slight decline of 0.16%, with bitcoin falling 0.5%.
XRP's sharp rise came shortly after #bitcoin recorded its fourth double-digit drop.
Today's significant rise in #XRP is mainly due to the "sell the news" sentiment affecting bitcoin.
This occurs when traders speculate on assets before an important event, driving the price up, and then sell their assets after the event, driving the price down.
This situation often leads to a reallocation of capital in the #cryptocurrency market in favor of alternative investments such as XRP.
In particular, XRP's lagging price appreciation in 2024 has made XRP a more attractive buy for traders.
Despite XRP's year-to-date return of -15% compared to the broader market's +35% and bitcoin's impressive 44.45% rise, it is recognized as a potential investment opportunity due to its future growth potential.
Additionally, XRP's growth coincides with an increase in activity and "whales" of large investors acquiring the cryptocurrency.
A notable increase in the number of "whales" holding large amounts of XRP occurred in April, just before the bitcoin exchange rate halved.
This trend is not limited to large investors: small investors and "fish" are also accumulating XRP tokens, indicating growing expectations of favorable market development.
For example, according to CoinShares' weekly report, XRP funds were among the few that saw inflows in the week ending April 12, in contrast to bitcoin and #binance , which saw negative inflows.
These inflows indicate growing investor confidence in the potential of XRP compared to its peers.
In terms of technical analysis, the recent movement of XRP price indicates a rebound from oversold conditions.
After falling 30% on April 13, XRP's daily Relative Strength Index (RSI) fell below 30, indicating an oversold market.
Read us at: Compass Investments
