XRP Soars 23% in Market Cap Following Regulatory Clarity

The cryptocurrency market is buzzing with excitement as XRP becomes the first digital asset to receive regulatory clarity in the United States, as highlighted by Armando Pantoja, an analyst. This historic development has caused XRP’s market cap to skyrocket by 23%. 

Further analysis by Santiment, a top analytic firm, wallets holding between 1 million and 10 million XRP coins now hold a record 7.06 billion coins, equivalent to $4.42 billion. This surge in accumulation, particularly by whales and sharks, has pushed social media discussions around XRP to their highest levels since January. This indicates a significant increase in interest and activity within the community.

XRP’s price has rebounded to pre-crash levels seen in July, fueled by substantial buying activity from large holders. In August alone, these wallets increased their holdings by 662.4 million coins, a 10.4% rise. 

Such actions have driven XRP’s social dominance to its highest point since January 30th, underscoring the community’s growing confidence in the asset. Doctor Profit, an analyst, notes that this renewed interest is not surprising given XRP’s impressive history, including a 60,000% explosion in 2017 and its consistent presence in the top 10 crypto market cap rankings alongside Bitcoin for the past decade.

Despite facing a 75% crash in 2020 due to the SEC lawsuit, XRP has remained resilient, holding its position among the top cryptocurrencies. This persistence is noteworthy, especially considering the SEC’s lawsuit significantly hampered XRP during the 2021 bull market. 

The recent U.S. court ruling that XRP is not a security as the SEC claimed marks a monumental win for Ripple. This outcome provides newfound regulatory clarity, opening the door for institutional investors who were previously deterred by legal uncertainties. 

Speculation is rife about the possibility of an XRP ETF, further fueling optimism. The ruling is expected to trigger a wave of bullish sentiment, positioning XRP for a potential breakout.

Technically, XRP has faced diagonal resistance since 2017, having been rejected six times since then, most recently in March. However, the chart mirrors the pattern seen before XRP’s 2017 breakout. Breaking through the $0.72 resistance level could pave the way for significant gains. 

While another rejection at this level might cause concern, a breakout is deemed inevitable, with targets above $1 anticipated by Q1 2025. If XRP replicates its 2017 Fibonacci levels, a potential peak of $16 could be on the horizon. 

Key buy zones are identified between $0.38 and $0.44, where investors have been accumulating. At press time, XRP is priced at $0.6163, with a 24-hour trading volume of $5,519,655,472, marking a 19.37% increase.