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As big cap altcoins begin to follow Ethereum, XRP has reached $1 for the first time in 37 months.
On Tuesday, the price of XRP reached $1 for the first time since March 2018, placing its market capitalisation at about $47 billion.
Furthermore, the fourth-largest cryptocurrency in the world market has broken out against the Bitcoin (BTC) pair, giving it major technical traction.
Mostly a technical rally, not too many fundamentals
As XRP was floating around $0.75, cryptocurrency traders noticed that the trading structure of the cryptocurrency was bullish.
According to Cantering Clark, a cryptocurrency derivatives broker, XRP has all of the technical components to rally. Since then, XRP has risen from $0.75 to more than $1.
On Tuesday, Clark said:
“Not for nothing, $XRP technically has taken all necessary strides to be bullish. After the exchange delistings and write-off by most of CT, this essentially left the market short from both a positional and sidelined standpoint. This can move much higher.”
Another well-known investor, known as Kaleo, said that XRP’s breakout against Bitcoin is particularly promising.
Kaleo clarified that XRP is on the brink of breaking out of a three-year downtrend against Bitcoin after its breakout over $1.
“$XRP / $BTC is about to break out of a 3+ year downtrend. Zero exposure here seems irresponsible. When this sh*tcoin starts to pump, it makes vertical moves (aka all at once for a burst). Still very early.”
Social volume is growing
Another driver of XRP’s technological ascendency has been its increasing social volume.
According to analysts at Santiment, a data analytics website, XRP’s social volume has been increasingly increasing in line with the social volume of many other cryptocurrencies.
The analysts stated:
“Most #altcoins have been maintaining their upward trajectory to start the week, with no greater surge among top 100 assets than what we’ve seen from $STX, which is seeing a 5-month high in social volume. Other spikes include $XRP, $XTZ, $FTM, and $BTG.”
If the technological framework of XRP remains unchanged and social volume remains reliably strong, the cryptocurrency’s momentum could theoretically carry it to the next big resistance region.
The next technical resistance stage is about $1.20, with a macro sell-wall at $2 stretching back to December 2017.