XRP is benefiting immensely from the ongoing bull market cycle as the digital currency has soared past the $1 mark to surpass Dogecoin
The ongoing bullish trend sweeping the cryptocurrency world has seen positions won and lost. Some crypto assets have registered new all-time highs (ATHs), just as others attained new levels this year. In a significant development, Ripple’s XRP finally breached the $1 mark on Saturday. The climb has a far-reaching impact in the broader cryptocurrency space, although it is below ChatGPT’s XRP price prediction.
XRP Breaks Three-Year Price Barrier
Notably, crossing the $1 level is a new record for the altcoin, which it has not attained in the past three years. With this achievement, XRP has now flipped Dogecoin (DOGE) from the sixth position as per the market capitalization ranking of crypto assets. XRP’s market capitalization currently stands at $61.49 billion compared to Dogecoin’s $53.51 billion, pushing DOGE down to the seventh position.
The spike in market capitalization for XRP came as its price jumped by over 85% within the last week, culminating in a $1.27 during Saturday’s trading. That price performance last occurred on November 11, 2021, for XRP. Â
XRP has witnessed price fluctuations in the past year and has not tested the $0.80 resistance level. It only briefly crossed the $0.70 mark on March 11, 2024, with a price of $0.72 before plummeting again to a low level. This current bullish run, which saw it hit a record set three years ago, started with the price at $0.60.
Financial experts have credited increased favorable regulatory developments and whale activity contributing to XRP’s price uptick. Notably, with U.S. President-elect Donald Trump’s pro-crypto stance, many anticipate a positive regulatory climate in the crypto industry. Trump will assume power on January 20, 2025.
Perhaps in a preemptive move, the coalition of State Attorneys General and the DeFi Education Fund filed a lawsuit against the SEC last week. The filing questions the regulatory body’s authority over digital assets.Â
The U.S. Securities and Exchange Commission and Ripple have been in a legal battle for years. Despite the recent ruling by a Federal Judge favoring Ripple, the SEC has appealed, and the case will linger until possibly the last quarter of 2025 or early 2026.
Whales and Retail Traders Shape Market Outlook
Furthermore, Santiment, a crypto analytics platform, says XRP’s price rally occurred on the back of crucial whale and shark wallets. These wallets hold between one million and one hundred million tokens. This group of holders accumulated an additional 453.3 million XRP valued at $526.3 million in the past week.
Interestingly, the accumulation came mainly from retail traders who wanted to take advantage of the XRP price rally to dump the token. According to Santiment, approximately 76 million tokens were dumped recently, and their value stands at about $87.9 million.
It remains to be seen whether the dumping move was a wise investment decision. If the bullish momentum carries XRP higher, whales who accumulated the token will profit from it. As of this writing, XRP has shed some of its gains and exchanges for $1.08, a 5.51% decline in the last 24 hours, according to CoinMarketCap data.
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