XRP has been making waves in the cryptocurrency market, experiencing a dramatic $13 billion inflow in just 24 hours.
The surge has increased its market capitalization from $124.57 billion to $137.83 billion, propelling the token back into the ranks of the top three cryptocurrencies by market cap, based on data retrieved by Finbold from CoinMarketCap on January 2.
After hitting lows of $2.01 on December 31, the cryptocurrency climbed to an intraday high of $2.44 during Thursday’s trading session. If XRP closes today in positive territory, it will mark the third consecutive day of gains, signaling a strong recovery and potential for continued bullish movement.
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XRP trading activity
The trading activity surrounding XRP has also seen explosive growth, with 24-hour volumes increasing by a staggering 147.36%, reaching $10.78 billion. A significant portion of this activity—$1.3 billion—has been driven by trades on Upbit, a South Korea-focused exchange, where the XRP/KRW trading pair dominates.
From a technical standpoint, the token’s price climbed from $2.16 to $2.41 within the day, representing a $0.25 increase, or over 11%.
XRP is trading above its 200-day simple moving average, a key indicator of long-term bullish momentum. Support for the digital asset currently lies at $2.20, with resistance at $2.57—a crucial level that could determine the trajectory of the next major move.
Broader market trends further support XRP’s bullish outlook. The yearly inflation rate for the cryptocurrency stands at 5.78%, a factor that, while modest, adds another layer of complexity to its valuation dynamics.
For now, the price action indicates a steady ascent, though the proximity to resistance levels suggests traders may exercise caution as the market approaches key decision points.
Crypto trading analyst weigh in
Market analysts have weighed in on XRP’s recent performance with optimism tempered by prudence. CryptoInsightUK, a renowned crypto trading expert on X notes that XRP is currently holding mid-range support, a critical position for determining its next move.
The cryptocurrency analyst suggests that a breakout to the top of the range is possible, which could trigger further price acceleration. However, they also highlight the potential for market volatility, particularly as traders holding short positions and late long entries may face liquidations.
The possibility of a dramatic “sendy” move, should XRP break above its resistance, adds an element of speculative excitement to the market.
Featured image via Shutterstock
