XRP has become the third largest cryptocurrency by market cap after rapid gains driven by regulatory speculation, market momentum, and Ripple's expanding influence. XRP surged past $2 on December 1st, 2024, marking only the second time since January 2018 that it has reached this level.
Top five coins by market capitalization as of Dec. 2. Source: CoinGecko
This milestone highlights growing confidence in the token's market strength. Current bullish momentum suggests the rally could push XRP toward $3 in the near future. Market participants, including whales and institutional investors, have intensified their activity, adding fuel to the upward trajectory.
XRP Price Chart | Source: KuCoin
XRP’s $150 billion market cap and $256 million inflow highlights its strength and potential. With legal progress, regulatory momentum, and bullish market trends, XRP targets $3.15 and beyond.
Source: CryptoQuant
XRP has rapidly surged to become one of the top three cryptocurrencies by market cap, reaching $150 billion, up from just $30 billion in early November. The token’s price has skyrocketed to $2.72, marking a 10% increase in the past 24 hours and a remarkable 50% gain over the last week.
This surge is fueled by a 30% spike in XRP derivatives open interest, which reached $4 billion in a single day, and substantial exchange inflows, with $256 million worth of XRP being transferred to exchanges in just three days. XRP’s strong performance, driven by growing market interest and robust trading volume of $8.9 billion, has positioned it as a dominant player in the crypto space, overtaking other major assets like Tether and Solana.
Key Drivers Behind XRP’s Rally
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Anticipation of RLUSD Stablecoin Launch: XRP has surged by over 400% in the past month, briefly becoming the third-largest cryptocurrency after Bitcoin and Ethereum. This rally gained further momentum with leaks suggesting that Ripple’s RLUSD stablecoin could debut on December 4, 2024. The stablecoin launch is expected to solidify XRP’s position in the market by enhancing its use cases and utility.
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Push for XRP Spot ETF Approval: Wall Street has ramped up efforts to secure an XRP spot ETF, following the successful debut of Bitcoin and Ethereum spot ETFs. Major players like WisdomTree, Bitwise, and Canary Capital have filed for XRP ETFs, with Bank of New York Mellon poised to administer the proposed trust. If approved, an XRP spot ETF could significantly boost its market valuation and attract institutional investment.
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Progress in Ripple vs. SEC Lawsuit: Ripple's legal battle with the SEC shows signs of resolution as the SEC Chair steps down in January. Speculation grows that the SEC may drop its appeal against Ripple following Trump's election win.
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Market Sentiment: Broader crypto markets are bullish with Bitcoin trading near $100,000 and Ethereum at $3,624. Ripple CEO Brad Garlinghouse's push for regulatory clarity has also strengthened investor trust in XRP.
Market activity indicates strong participation from whales and institutional players. However, CryptoQuant data warns that significant inflows to exchanges and leveraged positions could lead to corrections. Historical patterns suggest a potential 17% price decline under these conditions.
XRP Price Prediction and Market Outlook
XRP broke key resistance at $2, indicating strong bullish momentum. Analysts target $3.15 short term and $4 medium term, with potential for $5 in the longer term.
Short Term:
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Price range: $2.80 to $3.15
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Support: $2.30
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Resistance levels: $2.50 and $3
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Target trading volume: $5 billion
Market analysts predict that XRP could extend its rally by another 100%, reaching a price of $4.21. This projection is supported by XRP’s recent breakout above the $2.58 resistance level, which validated a rounded bottom pattern. If XRP maintains its bullish momentum, the next target is $3.57, marking a significant milestone on its path to an all-time high.
Prominent analyst CrediBULL Crypto notes that XRP is currently advancing within its third subwave of a larger bullish structure. According to the analyst, two more waves within this subwave could drive the token to surpass its previous all-time high. "We’re just getting warmed up. The ascent is going to be pure mania," he remarked.
Medium Term:
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Target price: $3.50 to $4
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Market cap at $4: $180 billion
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Projected volume increase: 10 % daily
Long Term:
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Price target: $5
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Market cap at $5: $220 billion
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Percentage gain from $2.30: 117 %
XRP whales have played a pivotal role in the recent rally. Wallets holding between 1M and 10M XRP accumulated 679.1 million tokens worth $1.66 billion over three weeks. This large-scale accumulation, alongside a surge in weekly active addresses by 200% to 307,000, reflects growing confidence among institutional and retail investors alike.
Analyst Steph has described XRP at $1.4 as a “bargain buy,” emphasizing that the token remains undervalued compared to its potential. Steph predicts an explosive long-term rally, with XRP possibly reaching as high as $50 under favorable market conditions.
XRP’s trajectory suggests a strong push toward $3.15. Analysts cite several factors supporting this prediction:
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Bullish Sentiment: 66.5% of traders hold long positions on XRP.
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Price Action: Breakout above $2 indicates potential for continued upward momentum.
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Resistance Levels: Next targets at $3 and $3.15 based on historical price trends.
Risks to XRP's Momentum
Whale Activity and Potential Sell-Offs
On-chain data reveals that whales have moved $256.3 million worth of XRP to exchanges over three days, signaling potential sell-offs. This activity could put downward pressure on XRP's price. If the $2.30 support level fails to hold, XRP could correct toward the $2 to $2.10 range, offering disciplined investors potential entry points during the dip.
Overleverage in the Derivatives Market
High leverage in the derivatives market adds to the risk of heightened volatility for XRP. A sharp price decline could trigger mass liquidations, exacerbating downward pressure. Leveraged positions have historically magnified corrections during rapid surges, increasing the likelihood of short-term instability.
Risk indicators
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Key support: $2.30
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Correction range: $2 to $2.10
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Historical correction probability after surges: 25 %
Ripple’s Strategic Advancements
Ripple aims to solidify its ecosystem. Approval of its RLUSD stablecoin and new partnerships are strengthening its position. XRP trades near $2.72 on December 2, 2024, showing a price increase of over 10% in the last 24 hours. Trading volume has dropped by 14% during the same period, signaling reduced activity from traders and investors compared to recent days. Buy XRP on KuCoin to catch the XRP bull market.
Ripple’s RLUSD Stablecoin Fuels Optimism
Ripple’s RLUSD stablecoin is at the center of XRP’s recent surge. Reports indicate that the New York Department of Financial Services may approve RLUSD by December 4. This stablecoin is part of Ripple’s strategy to revolutionize cross-border payments with faster, energy-efficient solutions.
Regulatory developments add to the optimism. SEC Chair Gary Gensler’s departure in January, coupled with the Trump administration's pro-crypto stance, raises the likelihood that the SEC will drop its appeal against Ripple. This could resolve a legal battle that has overshadowed XRP since 2020.
Conclusion
XRP's recent performance shows its growing strength in the crypto market. Positive regulatory developments increasing investor interest and strong market activity drive its rise. Surpassing $2 and becoming the 3rd largest cryptocurrency by market cap mark major milestones. The anticipated launch of Ripple's RLUSD stablecoin and potential regulatory shifts add to its momentum. Traders should remain cautious as high inflows to exchanges could signal corrections. XRP nears $3 making its trajectory critical to watch as it shapes the future of the cryptocurrency market.
