The price of XRP has surged by more than 8% within the last 24 hours, making it the best-performing digital asset among the top ten cryptocurrencies.
Over the past week, the token’s price has seen a remarkable increase of over 22%, accompanied by a surge in trading volume, reaching $2 billion, as per CoinGecko data, compared to the previous Sunday’s $1 billion.
Numerous factors contributing to XRP’s rise
As per YouHodler’s Chief of Markets, Ruslan Lienkha, there are several key factors propelling XRP’s price upwards. He emphasized Ripple’s successful legal battles with the Securities and Exchange Commission (SEC) and their involvement in global Central Bank Digital Currency (CBDC) initiatives.
In mid-October, Ripple celebrated the dismissal of all charges against its executives in an ongoing SEC lawsuit. Furthermore, just last week, the Central Bank of Georgia announced its collaboration with Ripple for the development of a digital currency pilot project.
Lienkha also noted that Ripple’s aggressive marketing, substantial CBDC projects with governments, and the overall bullish sentiment in the current crypto market have contributed to the rise, although the price has yet to surpass its previous high in July.
XRP’s rise part of wider altcoin rally
He said, however, that XRP’s latest price movement was not exceptional, given the recent price surge of various altcoins, and added that the uptick in altcoins is “a consequence of bitcoin growth, as other coins react with some delay.”
According to analysts at CTF Capital, ether’s recovery against BTC is a good sign for altcoins in general.
“This could be a healthy sign of a cascade spillover down to other smaller assets as seen in past bull cycles. Moreover, it represents a broader positive sentiment on the asset class apart from the ETF approval narrative,” CTF Capital said in an emailed note.
XRP was changing hands for $0.71 at 1:40 p.m. in New York, according to CoinGecko. It has replaced BNB as the fourth-largest token by market capitalization.
Coinglass data suggests XRP gains were largely spot-driven, as total liquidations in the past 24 hours breached just over $6.5 million. That’s also a signal of strong retail investors engagement in the current rally.
