XRP has witnessed a spectacular price surge, reaching $2.74 and experiencing a 44.7% increase in just 24 hours. This surge pushed XRP’s market capitalization to $156.3 billion, making it one of the most significant cryptocurrencies in the market as of December 3, 2024. The rally comes amid a sharp rise in network activity and significant whale accumulation, alongside the declare of WisdomTree’s filing for a spot XRP exchange-traded fund (ETF).
Data from blockchain analytics firm Santiment highlights a remarkable uptick in XRP’s network activity. Over 116,000 new active wallet addresses were created, signaling a broadening user base and growing engagement. This surge in wallet addresses aligns with a 93.29% increase in trading volumes, reflecting heightened interest from both retail and institutional investors.
In particular, whale wallets—those holding between 1 and 10 million XRP—have been heavily involved in this price movement. According to Santiment, these whales accumulated an additional 679.1 million XRP tokens, worth approximately $1.66 billion, over just three weeks. The accumulation by these large investors points to increasing confidence in XRP’s long-term prospects.
The total number of non-empty XRP wallets has surpassed 5.5 million for the first time ever, marking a historic high. This indicates that XRP is seeing greater distribution and adoption, both from retail investors and institutional players.
Adding to the momentum, WisdomTree, a major asset management firm, recently filed for a spot XRP ETF with the U.S. Securities and Exchange Commission (SEC). This makes WisdomTree the fourth firm to seek approval for an XRP-based investment product, joining Bitwise, Canary Capital, and 21Shares. The filing reflects the ongoing trend of traditional financial institutions looking to offer cryptocurrency exposure through regulated investment vehicles.
The proposed ETF would be listed on the CBOE BZX Exchange and initially use a cash-create method. Pending regulatory approval, in-kind creation and redemption could be introduced. If approved, this ETF would provide further legitimacy to XRP and could attract institutional money, propelling XRP’s price even higher.
The recent price surge has not been uniform across all markets. Trading data from major exchanges indicates that U.S.-based platforms like Coinbase are seeing significant demand for XRP, with minute-level price premiums ranging from 3% to 13%. This suggests that U.S. investors are driving a substantial portion of the rally.
In contrast, Upbit, a South Korean exchange with a larger XRP investor base than Binance, has not experienced the same price premiums, indicating that the rally may be primarily driven by Western markets. This geographic disparity offers an interesting insight into the varying demand for XRP across different regions.
Despite the impressive price rally, technical indicators present a more cautious outlook for XRP’s near-term price action. The Moving Average Convergence Divergence (MACD) chart shows a bearish crossover, with the signal line crossing below the MACD line. The histogram has entered negative territory, suggesting a potential for price corrections in the coming days.
Additionally, the profit-to-loss metric currently sits at 0.374, which means more investors are selling XRP than buying it. This cautious trading behavior, combined with the bearish MACD signals, indicates that sustaining the current rally may face obstacles.
Prominent crypto analysts have shared their thoughts on XRP’s recent price movement. Trader Raoul Pal pointed out that XRP’s chart shows promising signs, reminiscent of a past pattern that preceded a massive 5,600% price increase. Meanwhile, analyst CrediBULL Crypto highlighted the scale of the recent breakout, noting that XRP had eliminated 84 months of sideways price action in just a single monthly candle.
Trader Jacob Canfield has also projected that XRP could see a 240% price increase, with potential resistance zones from 2017-2019 acting as key targets. These optimistic forecasts suggest that the current rally may still have room to grow, but caution remains essential due to the mixed technical signals.
As XRP’s price continues to climb, Ripple, the company behind XRP, has issued warnings to users about potential scams. As with any significant price surge, periods of market excitement often attract fraudulent schemes, and Ripple is focused on promoting security awareness to protect investors.
At press time, XRP trades at $2.74, maintaining its position as one of the largest cryptocurrencies by market capitalization. The combination of whale activity, increased network engagement, and the filing for an XRP ETF has created a perfect storm for the cryptocurrency, propelling its price to new heights.
However, while the bullish sentiment is undeniable, technical indicators suggest that XRP could face short-term price corrections. Investors will need to remain cautious and stay alert to market movements, especially as the cryptocurrency approaches resistance levels.
With continued institutional interest and growing adoption, XRP’s long-term prospects remain strong. However, the road ahead may not be without its bumps, and market watchers will need to monitor both technical signals and external factors like regulatory developments to assess the future trajectory of XRP.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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