For the first time since 2018, XRP has surpassed $1 and here’s why

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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.

 

XRP/BTC 1-month price chart (Bitstamp). Source: TradingView.com

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.

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Kaleo clarified that XRP is on the brink of breaking out of a three-year downtrend against Bitcoin after its breakout over $1.

He noted:

“$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.”

XRP/Bitcoin on Poloniex. Source: Kaleo, TradingView.com

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.

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The next technical resistance stage is about $1.20, with a macro sell-wall at $2 stretching back to December 2017.

 

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