XRP surpasses Tether and becomes the third largest cryptocurrency! Will Ripple continue its upward journey towards $4, or will profit-taking loom on the horizon?
In a remarkable achievement, Ripple (XRP) has joined the list of cryptocurrencies that have recorded a new all-time high (ATH) for the second time this year! XRP is currently trading at $3.44, with a market cap exceeding $202 billion, thus surpassing Tether (USDT) to become the third largest cryptocurrency in the world by market cap. This skyrocketing rise is significantly driven by new investors flocking to the network, raising questions about the sustainability of this upward momentum.
New investors lead the rally
The Ripple network has witnessed tremendous growth, with network growth reaching a six-month high. This growth is measured by the number of new addresses joining the network and conducting transactions, clearly indicating that XRP is gaining strong momentum in the market. The recent surge in new addresses reflects an influx of more investors into XRP, likely driven by 'fear of missing out' (FOMO). As more people enter the market, the network becomes stronger, and demand for XRP increases, directly contributing to the rise in the currency's price.
Will the rise continue towards $4?
The recent rise in XRP's price is attributed to several factors, including overall market optimism and increasing institutional interest in the currency. In addition to this institutional support, XRP has received significant backing from individual investors, pushing it past Tether and securing the third spot globally.
The next main target for XRP is to break the $3.80 mark. If XRP can secure this level as support, it could likely rise further towards the $4.00 range, continuing its upward momentum.
Potential Challenges: Profit-Taking Looms
With all this rise, there is always another side to the coin. If investors decide to take profits after XRP reaches its historic high, the price could face a correction. The likelihood of profit-taking is high, especially after such a long wait for a new peak.
In the event of a correction, XRP's price could drop to around $3.00 to test its support levels. Any drop below the $3.00 mark would invalidate the bullish hypothesis, indicating a potential reversal in direction or a consolidation period (fluctuation).
What are your expectations for XRP? Do you expect it to continue its upward journey towards $4, or will profit-taking take precedence? Share your opinion in the comments!