XRP has skyrocketed, doubling its market capitalization to $66 billion in just one week. The token rose above $1, reaching $1.23 before closing at $1.15. This weekly rise of almost 100% has revived global interest in digital assets.
Several things contribute to XRP's uprise. Technical indicators indicate strength, with 18 green days out of 30. Legal developments have also had an impact. Eighteen states have sued the SEC, questioning its approach to cryptocurrency regulation. Market speculation contributes to the momentum. Traders anticipate significant regulatory changes, particularly if a crypto-friendly administration comes to office.
However, investors should remain cautious. XRP's strong inflation rate and overbought signs point to a possible pullback. In the derivatives market, 51% of traders take short positions.
Bitwise's CIO, Matt Hougan, expressed his thoughts on the Thinking Crypto Podcast. He's bullish on XRP's prospects, complimenting its community and technology. Hougan believes that XRP will surge once its legal issues are handled.
Despite current challenges, XRP's rapid growth shows its resiliency. The crypto community keeps a close eye on XRP as it navigates legal disputes and market swings.
