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Ripple’s XRP, the digital currency native to the XRP Ledger, has been on a strong rally, surging over 20% against bitcoin (BTC) as the wider cryptocurrency market experiences a significant upturn.
The surge has catapulted XRP to $0.74, marking its highest price point since the fleeting spike observed last November.
The anticipation surrounding a potential ETF managed by BlackRock has contributed to this uptrend, positioning XRP as the top performer within the broad-market CoinDesk 20 Index.
Key indicators support XRP outlook
The recent performance of XRP on the daily chart underscores its potential for sustained growth.
Despite a gradual uptrend and relative underperformance compared to other cryptocurrencies, the significant increase on March 11 is expected to influence short to medium-term price action favourably.
Currently trading at $0.69, XRP has surpassed the previous resistance level of $0.66, indicating a bullish momentum backed by a substantial increase in market capitalization and trading volume.
Whale activities boost confidence
The recent spike in XRP’s price can be attributed to various factors, including notable whale transactions and Ripple’s proactive engagement with regulators and financial institutions.
A significant transfer of 300 million XRP from Binance to an unknown wallet has been perceived positively by the market, reflecting a bullish sentiment.
Ripple CEO Brad Garlinghouse’s comments on working closely with regulated entities have further highlighted XRP’s value proposition compared to Bitcoin.
Technical analysis suggests upward trajectory
The technical analysis of XRP/USD points to a bullish breakout formation, with the March 11 price bar indicating a potential for entry on subsequent dips.
The support level at $0.66 is crucial for maintaining the upward momentum.
A decisive break above $0.74 could pave the way for XRP to reach the July 2023 highs of $0.93 and possibly extend to $1, contingent on trading volume support.
Comparative underperformance turns to advantage
Despite its year-to-date underperformance relative to Bitcoin and the broader market, XRP’s recent rally may indicate a market rotation towards cryptocurrencies that have yet to participate fully in the ongoing rally.
This shift could provide XRP with a unique advantage, as traders look to diversify their portfolios with assets poised for growth.
The movements of older cryptocurrencies like litecoin (LTC) and dash (DASH), along with XRP’s rally, suggest a growing interest in established digital assets that have lagged in recent months.
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