XRP (XRP-USD) has made an impressive leap, overtaking Tether (USDT-USD) to become the third-largest cryptocurrency by market value. This surge in XRP’s price comes as Bitcoin faces a major hurdle at the $100,000 mark, where a massive “sell wall” is preventing the leading cryptocurrency from gaining further momentum. A sell wall refers to a large stack of sell orders at a specific price point, which acts like a barrier preventing the price from moving higher.
XRP Surpasses Tether in Market Cap
XRP has seen an incredible surge, jumping over 18% in just 24 hours. This dramatic rise has pushed XRP’s market capitalization to $139 billion, surpassing Tether, which had long held the third spot among cryptocurrencies. XRP’s price has soared by 375% in the last 30 days, reaching $2.40, a level not seen in years.
The surge in XRP’s price has sparked significant activity in global markets. For example, South Korea’s Upbit exchange registered a massive $4 billion in XRP trading volume within a single day, signaling growing interest in the cryptocurrency.
Retail Traders Drive XRP’s Revival
Retail traders appear to be playing a key role in XRP’s recent resurgence. Mena Theodorou, co-founder of Coinstash, told CoinDesk, “This [XRP] comeback is making waves across the market, potentially signaling the return of retail traders and investors to the crypto market.” Theodorou highlighted the growing presence of XRP on platforms like TikTok, which has contributed to the token’s rising popularity among younger traders.
Rumors of Ripple’s potential stablecoin approval and the possibility of an XRP ETF have also fueled investor interest. As a result, XRP has gained traction as a key altcoin for investors seeking alternatives to Bitcoin.
Regulatory News Boosts XRP’s Price Surge
In addition to retail interest, regulatory news has also contributed to XRP’s climb. Markus Thielen, founder of 10x Research, noted to CoinTelegraph that the delay of South Korea’s crypto capital gains tax has helped create an environment conducive to speculative trading. The tax, which was initially set for 2021, has been postponed until 2027, removing a significant regulatory hurdle. According to Thielen, “This delay removes a critical hurdle to the crypto market,” and has provided a boost to XRP’s recent surge.
Bitcoin Struggles with the $100K Sell Wall
While XRP enjoys a surge, Bitcoin is facing a tough challenge. Bitcoin has struggled to break through the $100,000 threshold, encountering a massive sell wall worth $384 million at that price level. This resistance has prevented Bitcoin from gaining upward momentum, despite strong market catalysts and growing investor confidence.
Valentin Fournier, an analyst at BRN, told CoinDesk, “Despite strong market catalysts and growing investor confidence, Bitcoin continues to struggle with the $100K psychological barrier.” Fournier explained that this sell wall, made up of more than 4,000 BTC in sell orders, is holding Bitcoin’s price back, creating a bottleneck in its price action.
XRP Benefits From Bitcoin’s Struggles
Bitcoin’s difficulties in surpassing the $100,000 level have prompted investors to shift capital into altcoins, with XRP benefiting from this trend. Bitcoin’s market dominance has dropped from 61.5% to 56.5% since November 21, reflecting the growing interest in alternative cryptocurrencies. As Bitcoin’s dominance wanes, XRP is one of the key beneficiaries, capitalizing on the investor shift toward altcoins.
This trend of capital rotation is further evidenced by XRP’s rise, with the cryptocurrency outperforming Bitcoin as traders look for opportunities beyond the world’s largest crypto asset.
At the time of writing, XRP is sitting at $2.2644, up over 18% in the past 24 hours.
