XRP Skyrockets as Crypto Market Sees Unprecedented Momentum

XRP, a focal point in the cryptocurrency market, is experiencing a remarkable surge. Following legal challenges that hindered its peak levels during the 2020-2021 bull market, XRP has recorded its fastest growth since 2018 in recent months. This development is supported by a record increase in interest in derivative products, leading XRP to surpass $3, marking a 50% increase this month alone. In the last quarter, XRP gained 240% in value, further growing by 30% in the past week, elevating its market capitalization to $176.75 billion. This growth has positioned XRP ahead of the stablecoin Tether (USDT), making it the third-largest cryptocurrency.

RSI Indicator Reflects Rapid Movement

The impressive rise of XRP is also reflected in market technical analysis indicators. The Relative Strength Index (RSI), a popular market analysis tool, has recorded XRP’s 14-month RSI level at 92, the highest since October 2017. This RSI value indicates the speed and changes in price movement, highlighting the market’s rapid ascent.

While investors typically interpret RSI values above 70 as an “overbought” signal, this does not always indicate a potential pullback. The current momentum in XRP raises hopes that the market can maintain this pace for an extended period, especially as the increase in trading volumes suggests a solid foundation for this activity.

Record Growth in Volume and Derivative Markets

Interest in XRP extends beyond spot markets, reaching record levels in derivative markets as well. According to data from Coingecko and Coinglass, XRP’s spot trading volume has surged to $23 billion in just 24 hours. The volume in derivative trades has more than doubled, reaching $34 billion.

The value of open positions in XRP’s perpetual contracts has hit an all-time high at 2.34 billion XRP. Additionally, funding rates, which indicate the costs of leveraged positions, hover around 13%, signaling a much healthier market structure compared to the inflated rates seen in December.

Ripple $2’s newly launched stablecoin RLUSD, increasing partnerships, and speculation surrounding a potential XRP spot ETF are primary factors supporting this rise. Furthermore, Bitcoin $107,056’s resurgence above $100,000 and improvements in U.S. inflation data have also contributed to XRP’s acceleration.