In the recent cryptocurrency market, Ripple's $XRP has shown a strong upward trend, successfully surpassing Binance Coin ($BNB) to become the fifth largest cryptocurrency by market capitalization.
According to market data, $XRP has risen by as much as 230% over the past month, marking the most significant growth since 2018. In just a few weeks, the trading price of this cryptocurrency has rapidly risen from $0.05 to the current $1.79, attracting widespread attention from global investors. This surge is not merely speculative but reflects $XRP's increasingly important strategic position in the cryptocurrency ecosystem.
The total number of average active accounts doubled in November, increasing from about 12,000 to 25,000. Similarly, the number of new accounts activated on the XRP ledger also surged in November, indicating an increase in new users on the network.
The optimistic sentiment surrounding XRP has also increased, thanks to Ripple's strategic partnership with Archax, launching a tokenized money market fund on the XRP ledger.
Additionally, the cryptocurrency index fund company Bitwise announced on November 7 that it will rename its XRP ETF in Europe, providing European investors with access to XRP through a physically-backed product.
The current trading price is approximately $1.89, with XRP rising 19% in the past 24 hours and over 200% in the past month, marking the best increase since December 2017. This cryptocurrency continues to soar, reaching a local high of $1.91, the highest level since April 2021.
On a legal level, the long-standing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) is about to be resolved. Coupled with the cryptocurrency-friendly policies proposed by U.S. President Trump, this presents unprecedented opportunities for $XRP. Trump's campaign team has indicated that they will provide a clearer regulatory environment for cryptocurrencies, which will undoubtedly greatly boost investor confidence.
Another significant positive factor is that the New York Department of Financial Services (NYDFS) is expected to approve Ripple's launch of the $RLUSD stablecoin on December 4, allowing Ripple to enter the U.S. cryptocurrency market.
Technical and institutional investment outlook
In terms of technical analysis, XRP has broken through several key resistance levels, with the current trading price stabilizing around $1.7. If the current trend continues, XRP is expected to break the $2 mark. Looking more long-term, it may average between $4 and $5 by 2025, based on Ripple's positive progress in legal and regulatory matters.
In terms of institutional investment, asset management companies like BlackRock and JPMorgan have begun applying for $XRP related exchange-traded funds (ETFs). This series of actions not only indicates growing interest from institutional investors in $XRP but also suggests that this cryptocurrency may soon enter a more mainstream investment arena. If the ETF is approved, it will bring a large amount of institutional funds to $XRP, potentially further driving up its market value and price.
It is worth mentioning that the activities of whale investors are also supporting the rise of $XRP. Recently, the market has observed several large $XRP transactions, including one worth up to 104 million coins, valued at $167 million. These large-scale transactions not only show the confidence of major investors in $XRP but also somewhat drive its market momentum.
Overall, $XRP is at an extremely critical developmental stage. From regulatory environment and technical breakthroughs to institutional investments, various signs indicate that this cryptocurrency is gradually realizing its long-term vision of becoming the global payment infrastructure.
However, it is important to note that the mid-term and long-term charts clearly show a downward trend in price divergence.
Another important analysis is that since November 16, price and trading volume have shown a negative correlation. This indicates that XRP is in a distribution phase, and traders may be taking profits.
Therefore, considering that trading volume has reached its lowest level since November 10 over the past three days, the possibility of a reversal in XRP's upward trend is increasing.
Beware that good news can turn into bad news, and on December 1, Ripple is expected to unlock 1 billion XRP, which will create significant selling pressure. Those holding XRP may want to sell gradually as the price rises to avoid profit reversal.
