Following a prolonged period of stagnation, Ripple’s XRP token has finally broken out of its prolonged consolidation phase, marking a significant uptick to a recent multi-month height. This article delves into the possible catalysts behind this remarkable price surge that propelled XRP close to the $3 mark.
As reported yesterday, a significant price shift saw XRP soar from approximately $2.3 to almost $3 within a 36 to 48-hour window. Although it didn’t cross the $3 hurdle or challenge its January 2018 all-time high, it did manage to outperform USDT in terms of market capitalization after retracing slightly.
Some market observers had predicted this trend, cautioning that many traders could overlook it. Santiment, the analytics firm, has also shared its insights into this dramatic surge.
The firm highlighted that this breakout occurred during a time of notable growth in the network behind the token, as evidenced by the rise in newly created wallets. A whopping 7,000 new addresses were established in just 24 hours.
Increased retail interest in the token across social media platforms was another reason cited by Santiment for the surge. It noted that 5.5% of all crypto discussions revolved around XRP, the highest level since mid-March when Ripple’s CEO announced the resolution of the lengthy legal dispute with the US SEC.
As XRP began its breakout, another potential driver of the asset’s surge was noted. The number of substantial wallets holding at least a million tokens had reached a record high of 2,743. The following day, this number stood at 2,742.
The resurgence of the overall market is the last catalyst to be discussed. Like XRP, many other cryptocurrencies were in a consolidation phase for weeks, with Bitcoin leading the pack. However, the market leader broke out on Wednesday evening and led the entire market into a bullish trend.
After topping at a new all-time high of nearly $119,000 on Friday, numerous altcoins, including XRP, followed suit. As the first, largest, and arguably most influential digital asset, BTC’s movements have a significant impact on the rest of the market.
