Original title: Behind the XRP breakout: Drivers and Dynamics
Original author: KoreanDegen, crypto Kol
Original translation: zhouzhou, BlockBeats
Editor's note: The recent surge in XRP has attracted attention, resulting from the interweaving of multiple factors: technical breakthroughs, renewed focus from Korean investors (along with the SEC lawsuit dismissal and WisdomTree's S-1 filing), and the absence of historical sellers like Jed McCaleb. Together, these factors have driven demand for XRP, leading to exceptional market performance.
The following is the original content (for ease of reading and understanding, the original content has been slightly reorganized):
The recent surge in XRP highlights the complex interaction between technical factors, market structure, and regional dynamics.
Market background
On November 10, XRP broke through approximately $0.55, decisively surpassing the 100-week, 200-week, and 350-week moving averages.
Perpetual contract CVD: Decrease.
Open interest: Increase.
Meanwhile, Upbit's ranking in the App Store and Play Store began to rise. This interweaving of factors suggests a brewing of market activity.
November 12: Turning point
Upbit ranked first in the Play Store, and considering the demographic structure of users in Korea—mainly older investors aged 50 to 60 who primarily use Android devices, with Samsung dominating—this signal is particularly critical.
With skyrocketing demand, XRP broke through ₩1,000 Korean won (approximately $0.71). Arbitrageurs quickly adjusted the market imbalance, leading to a large number of short positions being liquidated.
Supply vacuum
In previous cycles, Jed McCaleb's continued selling limited XRP's upward momentum. However, this time he has no more coins to sell.
Structural breakthrough
Only Bitstamp and Upbit's historical charts date back to 2017, showing a diagonal breakout that has lasted for 6 years, with Upbit's overwhelming dominance in spot trading volume becoming a symbol of Korean investment enthusiasm.
Demographic characteristics of demand
According to a recent report from (Hankyung), the role of older Korean investors in the cryptocurrency market is becoming increasingly prominent:
Since 2021, the number of cryptocurrency accounts held by individuals over 60 has increased by 30% (+188,000 new accounts).
The number of accounts among people over 50 increased by 22.5% (+356,000 accounts).
As of September 2024, individuals over 60 hold a total of $4.8 billion in crypto assets.
This demographic change indicates that older investors, especially those in Korea, have played a key role in driving demand for XRP.
Article link: Hankyung Article
Larger context
While trading volume in Korea is a major factor, it is not the only driving force. Other exchanges, such as Coinbase and Robinhood, also contributed to XRP's surge. As of now, XRP's spot trading volume has exceeded $6.6 billion.
This is not just an ordinary rise. It is the interweaving of the following factors:
1. Key technical breakthrough.
2. Renewed focus from retail investors, especially Korean investors. (Subsequently driven by the SEC lawsuit dismissal and the release of WisdomTree's S-1 filing)
3. The absence of supply pressure from major historical sellers like Jed McCaleb.
When causality and multiple factors collide, the results are often extraordinary.
