XRP appears to be nearing a point where it could exceed Solana’s market capitalization, a significant achievement that many have long anticipated.
With Solana facing its own set of challenges, XRP seems to be leveraging a shift in market sentiment to its advantage, evidenced by its recent price surge.
This sudden upward movement has reignited interest and raised inquiries about the factors propelling XRP’s current momentum. Is this surge momentary, or is XRP strategically positioning itself for a sustained uptrend?
XRP Progresses Towards Surpassing Solana
XRP’s bullish climb to $1.92 (+37.3% weekly) has brought it on the cusp of overtaking Solana in market cap, closing the gap to a mere $3.2 billion.
Recent data has underscored XRP’s escalating momentum, characterized by substantial volume increases and consistently higher lows since mid-November, indicating robust accumulation.
In contrast, Solana has remained range-bound around $237, registering a modest 0.51% daily gain while encountering resistance near the critical level of $240.
XRP’s rapid rise is mirrored by its escalating daily trade volumes, as depicted in the charts, whereas Solana’s activity portrays signs of slowing down.
If this divergence persists, XRP’s market cap of $109.4 billion might soon surpass Solana’s $112.67 billion, marking a noteworthy milestone for the asset during its resurgence.
Primary Catalysts Behind XRP’s Upward Movement
XRP’s momentum is primarily fueled by recent legal clarity in its favor, bolstering investor trust.
A positive court verdict regarding XRP’s non-security status has rekindled institutional interest, manifested in the rising daily trade volumes.
Furthermore, its utility in cross-border transactions, paired with Ripple’s expanding partnerships in Asia and the Middle East, continues to propel adoption.
On-chain metrics reveal heightened whale activity, with significant accumulations in wallets noted over the past month.
Simultaneously, a broader market shift towards alternative coins amid Bitcoin’s consolidation above $99K has enhanced XRP’s attractiveness. Technical indicators play a significant role in driving XRP’s surge.
The Relative Strength Index (RSI) has surged to 86, indicating extreme bullish momentum. This signals overbought conditions, typically associated with robust upward trends and investor optimism.
The sharp price surge has also coincided with a spike in daily trade volumes, indicating increased market participation.
Can XRP Sustain its Momentum?
For XRP to uphold its momentum and decisively overtake Solana, several factors will play a crucial role.
Although its RSI hints at overbought conditions, suggesting a potential cooldown, the increasing trade volumes and whale activity suggest that bullish sentiment remains robust.
If Bitcoin continues to consolidate and altcoin dominance strengthens, XRP could sustain its current trajectory.
The potential market capitalization flip could potentially trigger a shift of funds into XRP from other assets, reinforcing its upward movement. Nevertheless, Solana’s resilient ecosystem and upcoming advancements could pose a challenge to XRP’s lead.
Nonetheless, the asset’s solid fundamentals and heightened investor interest indicate that it is well-equipped to capitalize on this opportunity, potentially marking a significant change in the alternative coin market hierarchy.