XRP has had a strong rally, reaching its highest level in over three years. According to the latest data, the altcoin is trading near $1.84, up more than 267% this month.
Several factors are driving the growth of XRP, particularly its role in the cryptocurrency payment market, which continues to attract the interest of institutions and strengthen its long-term outlook.
XRP Continues to Develop
The growth of XRP's price is attributed to its increasing demand, but the recovery of the altcoin is also a result of the overall shift in sentiment towards cryptocurrency assets. Juan Pellicer, a senior researcher at IntoTheBlock, discussed this with BeInCrypto.
"XRP has had an exceptional price performance in the past two weeks, consistently outpacing many major cryptocurrencies. This outperformance is likely to continue, supported by XRP's strategic position in the global cryptocurrency payment infrastructure and notably improved sentiment following positive legal developments in the U.S. The increasingly constructive stance of the authorities towards cryptocurrency has created a favorable environment for the adoption strategy of XRP," Pellicer told BeInCrypto.
In the past two weeks, whale activity in the XRP market has been notable. Holders of 1 million to 10 million XRP have accumulated over $1.12 billion in value of the altcoin.
This large-scale accumulation indicates strong institutional and investor confidence, especially as XRP inches closer to the $2.00 mark. The strategy of the whales suggests they believe in the long-term potential of XRP, which is crucial for the stability of the altcoin.
XRP Whale Address. Source: Santiment
However, this significant accumulation raises concerns about profit-taking. Many market observers speculate that once XRP reaches a major price level, whales may start taking profits, potentially causing a decline.
However, as the altcoin season has not yet truly begun, whales are likely to hold their positions and avoid selling early. This could sustain the upward momentum for XRP in the short term.
XRP Price Prediction: Multi-Year High
The price of XRP has increased by more than 267% this month, currently standing at $1.84. The altcoin is approaching the psychological resistance level of $2.00, a significant price point in history that has triggered major market fluctuations. Reaching this level will mark an important milestone, signaling optimism and the potential for continued market growth.
If XRP successfully turns the $2.00 level into support, it could trigger increased demand, continuing to push the price higher. Support at this price level is likely to attract more investors, setting the stage for a push to higher prices. With the ongoing momentum, XRP could target new highs in the coming weeks.
XRP Price Analysis. Source: TradingView
However, if the market faces a broader correction or if profit-taking becomes common among the whales, XRP may experience a pullback. In such a scenario, support at lower levels could become important to maintain the overall bullish outlook. Currently, XRP's price trajectory remains positive, with plenty of potential for further growth in the near future.
