In a remarkable turn of events, XRP has surged by over 20% in the last 24 hours, surpassing Tether (USDT) to become the third-largest cryptocurrency by market capitalization. Meanwhile, Bitcoin (BTC) struggles to break the $100,000 barrier, facing a massive $384 million sell wall that could hinder its upward movement.
XRP’s Strong Performance and Market Growth
Over the past month, XRP has experienced a stunning 375% increase, reaching $2.40 per token. In the past 24 hours alone, the cryptocurrency has surged by more than 20%, driving its market capitalization to a staggering $139 billion. This price increase has helped XRP leap ahead of Tether (USDT), securing the third spot in the global cryptocurrency rankings.
This sharp rise has sparked widespread attention and speculation, with some analysts believing that it signals the return of retail investors to the crypto space.
Factors Fueling XRP’s Rally
Several factors are contributing to XRP’s impressive performance:
- TikTok Influence: Social media platforms like TikTok are fueling retail interest in XRP, helping to amplify its market presence.
- Ripple’s Potential Stablecoin Approval: Investors are excited by the possibility that Ripple might soon launch a stablecoin, which could further boost demand for XRP.
- XRP ETF Speculation: Speculation about the approval of an XRP ETF has generated optimism among investors.
These developments are likely behind the renewed bullish momentum that has helped propel XRP to its current position in the market.
Surge in XRP Trading Volume
XRP’s trading activity has spiked globally, with Upbit, South Korea’s largest crypto exchange, reporting a record $4 billion in XRP-Won trading volume in just 24 hours. This volume accounted for over 27% of Upbit’s total trading activity, according to CoinGecko data.
In addition, recent news from South Korea revealed that the country’s Democratic Party had postponed the implementation of a crypto capital gains tax until 2027, removing a significant barrier to speculative trading and potentially sparking even more interest in the market.
Bitcoin Faces Resistance with $384M Sell Wall
Despite XRP’s impressive rise, Bitcoin is facing a tough challenge as it struggles to break past the critical $100,000 mark. Bitcoin’s price has been fluctuating between $90,000 and $100,000 for the past two weeks, unable to sustain momentum above the six-figure threshold.
One of the main obstacles is a $384 million sell wall that has built up at the $100,000 price level. Valentin Fournier, an analyst at BRN, explained that this massive sell order needs to be absorbed before Bitcoin can continue its upward movement.
Despite strong market fundamentals, profit-taking has kept Bitcoin from surpassing the $100,000 level, resulting in what Fournier describes as “a significant resistance level”.
Market Shifts: Decline in Bitcoin Dominance
As Bitcoin’s dominance continues to slide, more capital is flowing into altcoins like XRP, further indicating a shift in investor sentiment. Bitcoin’s market dominance has dropped from 61.5% to 56.5% since November 21, signaling a growing interest in alternative cryptocurrencies.
With increasing liquidity in the market, capital is being rotated out of Bitcoin and into altcoins, fueling the rise of XRP and other assets. This trend suggests that investors are looking beyond Bitcoin for greater growth potential.
XRP Gains Ground While Bitcoin Faces Resistance
XRP’s remarkable rise, fueled by social media trends, speculation about Ripple’s stablecoin, and growing investor confidence, has propelled it to the third spot in the cryptocurrency rankings. Meanwhile, Bitcoin struggles with significant resistance at the $100,000 mark, hindered by a large sell wall and declining market dominance.
As capital continues to shift away from Bitcoin and into altcoins like XRP, the latter may continue to see strong upward momentum in the coming weeks. This growing investor interest in XRP positions it as a strong contender in the cryptocurrency market, especially as it moves ahead of Tether in market capitalization.
