According to U.Today, XRP has experienced a significant surge, surpassing the $1 mark and reaching a three-year high. This increase has propelled XRP to the sixth position in the cryptocurrency rankings by market capitalization, overtaking Dogecoin. The cryptocurrency's price has soared by over 85% in the past week, reaching a peak of $1.268, a level last seen on November 11, 2021. The surge is attributed to favorable regulatory developments and increased activity from large holders, commonly referred to as 'whales.'
The ongoing legal battle between the SEC and Ripple has significantly impacted XRP. However, recent developments suggest a potentially more favorable regulatory environment. A lawsuit filed by a coalition of state attorneys general and the DeFi Education Fund against the SEC challenges the regulator's authority over digital assets, indicating a shift in the regulatory landscape. According to Santiment, the recent price rally is driven by key whale and shark wallets holding between 1 million to 100 million XRP tokens. This group has accumulated an additional 453.3 million XRP, valued at $526.3 million, over the past week.
While large holders are increasing their XRP holdings, retail traders have been selling off their tokens during minor rallies. Wallets with less than a million XRP have offloaded 75.7 million tokens, worth $87.9 million, during this period. Historically, when key stakeholders increase their holdings, it often leads to favorable market cap growth, which is currently the case for XRP. The cryptocurrency's market capitalization has risen to $60.39 billion, surpassing Dogecoin's $53.29 billion, and marking a significant milestone as it breaks the psychological $1 level.
The bullish momentum for XRP is seen as a strong positive signal, with potential resistance levels at $1.50 and $2 if the upward trend continues. However, there is a possibility of a price retracement if profit-taking occurs. In such a scenario, support is expected around the $1 mark in the intermediate term. The recent developments and market dynamics highlight the volatility and rapid changes in the cryptocurrency landscape, with XRP's recent performance underscoring its potential for further growth.
