The new altcoin surge saw XRP taking centre stage, with the altcoin returning more than 75% in the last 7 days. Indeed, during the aforementioned surge, the total crypto-market capitalisation surpassed the elusive $2 trillion mark. While DeFi tokens have played an important part, with a market capitalisation of $50 billion, the altcoin rally is being led by the top-25 traditional alts, with many of them providing double-digit returns.
Furthermore, the rally is expected to last a long time, particularly given that trade volume had increased by more than 130 percent in 24 hours as of press time. It is not only the demand for exchanges that is significant, but also the netflows. The narrative of HODLers is being bolstered by an increase in the number of XRP exiting top spot exchanges.
The price surge isn’t done yet, as shown by the volume of purchases. In particular, at the time of writing, the number of transactions was not even half of the 2021 peak of over 2.6 million.
Furthermore, the ROI map for the previous six years seemed to indicate that there is still demand for more vertical expansion. About half of the continuing trading volume in the XRP market comes from Binance countries, indicating that demand for the altcoin remains exponentially strong. Based on historical charts and market trends, XRP’s price is expected to resume its northbound trajectory unless trading volume (which has a direct effect on price volatility) decreases.
A month earlier, XRP was under heavy selling pressure as a result of a decrease in network traffic. The SEC litigation contributed to the selling risk, and demand on spot markets fell. However, the recent increase in the number of XRP transactions is an indication of increased network operation, implying that the rally may continue until a correction. In reality, at the current price level, XRP could be undervalued.
According to the attached table, the highest increase in transactions coincided with a decrease in the asset’s price in October 2020. However, the patient recovered well. XRP finished 2020 at one-third of its November 2020 valuation, although it was up 300 percent from $0.24 to $0.98 at press time.
Other indicators, such as the amount of XRP exchanged on top exchanges, HODLers profiting at the current price level, and the concentration of big HODLers, suggest that altcoin traders remain bullish on XRP. A correction is possible, although it will occur at the end of the altcoin rally. At the moment, there are indications of slowing but no indications of halting. According to its metrics and on-chain research, XRP’s market surge could not be over.
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