XRP has become a focal point in the cryptocurrency market, experiencing a remarkable surge in recent months. After missing out on new highs during the 2020-2021 bull run due to legal challenges, XRP has recorded its fastest growth since 2018. This surge has been fueled by unprecedented interest in derivative products. In the past month alone, XRP’s price climbed by 50%, reaching a seven-year high of over $3. In the last quarter, the token gained 240%, adding another 30% in the past week to achieve a market capitalization of $176.75 billion. This growth has pushed XRP past Tether (USDT), making it the third-largest cryptocurrency.
RSI Indicates Strong Momentum
XRP’s impressive rally has reflected in key technical indicators. The Relative Strength Index (RSI) for XRP reached 92 on the 14-month chart—its highest level since October 2017. RSI, which measures the speed and magnitude of price movements, highlights the robust upward momentum in the market.
While an RSI above 70 often signals an “overbought” condition, it does not necessarily mean a price pullback is imminent. The current momentum in XRP, coupled with increasing trading volumes, suggests the rally could sustain for an extended period.
Record Volumes in Spot and Derivative Markets
Interest in XRP extends beyond spot markets into derivatives. According to data from Coingecko and Coinglass, XRP’s spot trading volume surged to $23 billion within 24 hours, while derivative volumes more than doubled to $34 billion.
The open interest in XRP perpetual contracts has hit an all-time high, with 2.34 billion XRP currently held in positions. Additionally, funding rates—which reflect the cost of leverage—hover around 13%, indicating a healthier market compared to the inflated rates seen in December.
Factors Driving XRP’s Surge
XRP’s rise is attributed to several factors, including the launch of Ripple’s stablecoin, RLUSD, increasing partnerships, and speculation around a potential XRP spot ETF. Broader market conditions, such as Bitcoin’s return above $100,000 and improved inflation data in the U.S., have also contributed to XRP’s momentum.
Stay updated with Dey There for the latest developments on XRP and its evolving role in the cryptocurrency market.
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