In an impressive 24-hour rally, XRP added over $9.5 billion to its market capitalization, climbing from $123.13 billion to $132.68 billion. This bullish momentum pushed XRP’s price up by 7.05% to $2.20, vastly outperforming the overall crypto market’s more modest growth of 1.97% in the same period. While XRP’s weekly performance reflected just a slight +0.6% increase, its recent jump signifies renewed institutional interest in the digital asset.
New Spot ETFs Driving Market Excitement
The surge in XRP’s market activity coincided with the launch of two groundbreaking U.S. spot XRP ETFs: the Grayscale GXRP and Franklin Templeton’s fund. These funds attracted a combined $164 million in net inflows on their first day of trading (November 24), marking their second-best day since inception. This strong demand builds on the market exposure already established by Canary Capital’s XRPC ETF, which holds an impressive $306 million in assets under management.
ETF-driven investments are providing significant liquidity support for XRP while simultaneously locking up tokens in custodial assets. This development is reducing sell pressure, a pivotal factor contributing to XRP’s recent price stability.
Market Dynamics and Volume Spike
XRP’s market cap trajectory showcased rapid growth, followed by a period of consolidation. Despite softening slightly in late trading sessions, the asset managed to retain most of its gains. Daily trading volumes surged by 51.5% to $6.34 billion, reflecting a sharp increase in participation from institutional investors and retail traders alike.
Technically, momentum indicators such as the golden cross pattern and RSI divergence signaled bullish conditions ahead of the rally. However, the $2.23 price level is currently acting as resistance, with some late-session cooldown attributed to profit-taking activity.
Whale Activity and Retail Engagement
Market data revealed that whale accounts sold approximately 180 million XRP (valued at $396 million) during the rally. However, their offloading was counterbalanced by increased retail participation, as evidenced by a 12% rise in XRP’s social dominance. This highlights growing interest among everyday traders in response to the ETF launches and strong price movements.
Can XRP Sustain Its Gains?
For XRP to maintain its bullish momentum, holding above the $2.20 price level is crucial. Failing to sustain this threshold could trigger a correction, especially given early signs of MACD divergence and an elevated volume-to-market-cap ratio (4.78%), which often signals overbought conditions.
If you’re considering entering the crypto market, platforms like eToro provide an excellent way to buy, sell, and trade XRP and other cryptocurrencies. With features such as 0% stock commission and real-time copy trading, eToro is tailored for both beginner and experienced investors. As always, remember that cryptocurrency investments carry high risks, and you should assess your financial situation before diving in.
Stay tuned for further updates on XRP’s price movements and market developments as the cryptocurrency world continues to evolve!
