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XRP surpassed the $1 mark on Saturday, hitting a three-year high. It has now overtaken Dogecoin (DOGE) to secure sixth place in the cryptocurrency rankings by market capitalization.
The price of and increased whale activity appear to have contributed to the XRP price surge.
The SEC’s legal battle with Ripple has had a huge impact on cryptocurrency. However, recent events indicate that a more favorable regulatory climate may be on the horizon. A lawsuit launched Thursday by a coalition of state attorneys general and the DeFi Education Fund against the SEC challenges the regulator’s authority over digital assets.
According to Santiment, the XRP price rise occurred thanks to whale and shark wallets that hold between 1 and 100 million tokens. This group has collectively accumulated an additional 453.3 million XRP worth $526.3 million in the past week alone.
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Meanwhile, the coins they are accumulating mainly come from retail traders trying to dump their holdings during any minor rally in XRP. Wallets with less than 1 million XRP sold 75.7 million tokens worth $87.9 million during this period.
Historically, any cryptocurrency experiences favorable market capitalization growth when its major stakeholders increase their holdings and trust. Santiment explains that this is exactly the scenario that is currently unfolding for XRP.
XRP returns Dogecoin
The rise in XRP took its price above $1 and increased its market capitalization to $60.39 billion.
The price increase propelled XRP’s market capitalization to sixth place, ahead of Dogecoinwhich is valued at $53.29 billion, in seventh place. XRP’s breakout of the psychological $1 level is considered a strong bullish signal.
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If the bullish momentum continues and a lasting breakout of the $1.27 level is reached, XRP could face resistance near $1.50 and $2. A retracement is however possible in the event of profit taking.
If XRP price declines, support should be at $1 in the medium term.