Ahead of today's FOMC statement, Ripple Labs-backed XRP gained bullish momentum. The large-cap altcoin, which has a fully diluted valuation of about $65 billion and an average daily trading volume of about $3 billion, has increased more than 8% in the past 24 hours, reaching a 24-hour high of about 0.657 USD.
As a result, XRP reclaimed the sixth position by market capitalization, surpassing Circle-backed #USDCâ .
Demand for XRP is increasing
- XRP has gradually separated from Bitcoin and the broader cryptocurrency market. Online data from Santiment shows a significant increase in accumulation by large entities. XRP holders of more than 10,000 units rose to a 6-month high of about 279,400 accounts. In just the past five weeks, 2,389 XRPL accounts have been classified as âsharksâ with balances exceeding 10,000 XRP units. Additionally, the number of accounts holding more than 100,000 XRP units also increased.
Growth drivers
- XRP's recent growth is largely due to improved fundamentals for Ripple Labs in the Web3 sector. Ripple has made significant progress on XRPL, including launching a decentralized exchange (DEX), automated market maker (AMM), and EVM-compatible sidechain.
- Ripple also plans to introduce US dollar-backed#stablecoinson both the XRPL and Ethereum networks. To support the launch of RLUSD, Ripple is partnering with ClearBank and Zero Hash, among others.
- Furthermore, the case between Ripple and the SEC could soon reach a resolution, with a settlement likely to happen soon as the agency has dropped most of its investigations into crypto projects.
Mid-term goal
- XRP could test this year's high of around 75 cents if it stays above 66 cents in the coming weeks. The bullish outlook is supported by the RSI breaking out of the downtrend and XRP consistently closing above the 50 and 200 daily moving averages.
- In the event of a broader crypto market downturn, XRP is expected to find solid support between 54 cents and 50 cents.
