Summary
⚈ Strong technical indicators support the uptrend, despite whale activity that typically signals selling pressure.
⚈ Regulatory momentum builds, with Missouri proposing a capital gains tax cut and progress in Ripple’s legal battle with the SEC.
While most cryptocurrencies, led by Bitcoin (BTC), are experiencing a pullback, XRP has defied the trend with sustained buying pressure, adding nearly $7 billion to its market capitalization.
At the start of the last 24-hour period, the token’s market cap stood at $139.69 billion. By press time, it had climbed to $146.47 billion, a gain of $6.78 billion, or 4.85%.
At its peak during the period, XRP’s market cap briefly surged to $154 billion, temporarily overtaking Tether (USDT) to become the third-largest cryptocurrency by market cap.
Regarding price action, XRP also posted solid gains, reclaiming the $2.50 level with a 24-hour rise of about 2.5%. On the weekly chart, the token is up 19%.
Notably, XRP’s momentum appears to be supported by both fundamentals and technical indicators. For instance, the asset is trading above its 50-day simple moving average (SMA) of $2.19 and well above its 200-day SMA of $1.90, signalling a strong uptrend in both the short and long term.
Why XRP price is breaking out
Interestingly, XRP has maintained its bullish structure despite notable whale activity that could typically signal selling pressure. Specifically, on May 13, blockchain tracker Whale Alert reported a transfer of 20 million XRP, worth $50 million, to Bithumb. Such moves often precede volatility or corrections.
Even with a gloomy broader market and on-chain sentiment, XRP appears to be getting a lift from the regulatory front.
To this end, Missouri is poised to become the first U.S. state to eliminate capital gains tax, which could benefit crypto holders, stock investors, and real estate stakeholders.
If passed, the law would allow a 100% income tax deduction on capital gains, including profits from digital assets like XRP.
Meanwhile, anticipation is building around the resolution of Ripple’s ongoing case with the SEC at a time the agency’s Chair, Paul Atkins, has emphasized the need for modernized crypto regulations to support innovation and align with President Donald Trump’s vision of making the U.S. the “crypto capital of the planet.”
Ripple and the SEC have submitted a settlement proposal, which has helped XRP add nearly $100 billion in market cap since its major legal win affirming it is not a security.
Featured image via Shutterstock
