XRP Price Hits 7-Year High: Will the Rally Continue?

XRP is spreading excitement in the market with its price movement. This month alone, its price skyrocketed by 50%, smashing through a seven-year high above $3. If that isn’t impressive enough, the cryptocurrency has surged 240% over the past quarter. It’s now the third-largest crypto, outranking Tether with a staggering $176.75 billion market cap.

What’s driving this explosive growth, and could this momentum last?

The Fastest Rally Since 2018

XRP’s current rally is the fastest it has seen since January 2018, a time many crypto enthusiasts remember as the peak of the altcoin era. The 14-month Relative Strength Index (RSI) has hit 84.80, its highest since December 2017, when it reached 94.57.

Normally, an RSI above 70 suggests an asset is “overbought,” which could signal a price correction. However, in strong bull markets like the one XRP is in, these high readings don’t always mean a pullback is coming. In fact, prices can keep rising even when the RSI stays high.

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Market Trends and XRP’s Rising Popularity

XRP’s price surge is supported by a dramatic increase in trading activity. Spot trading volumes have jumped 84.72%, reaching $22.85 billion in just 24 hours. Derivatives trading has more than doubled to $34 billion, and perpetual futures open interest has hit a record-breaking 2.34 billion XRP. The healthy funding rate of 13% suggests the market is enthusiastic but not overheating.

But it’s not just the numbers driving XRP’s rally. Ripple’s new stablecoin, RLUSD, and growing speculation about a potential spot XRP ETF are adding fuel to the fire. Partnerships supporting XRP adoption are also creating a buzz.

Meanwhile, Bitcoin’s rise past $100,000, helped by optimism over slowing U.S. inflation, is boosting the overall crypto market. Ripple effects (pun intended) are benefiting other altcoins like XRP and XLM.

XRP’s Future: Could the Growth Continue?

XRP’s reclaiming of the third spot in the cryptocurrency rankings, surpassing even BlackRock in market cap, suggests a shift in market sentiment. With strong funding rates and key developments underway, XRP has the potential to keep growing.

As XRP’s streak continues, the question remains whether this momentum will hold or if a correction is looming. One thing is for sure—the entire crypto world is watching.

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