The native token of the Ripple ecosystem, XRP, has gained bullish momentum as the crypto community discusses another price rally.
Ripple (XRP) is up by 7.5% in the past 24 hours, making it the top gainer among the leading 100 cryptocurrencies. XRP is currently trading at $0.643 at the time of writing — this level was last seen in early April.
XRP’s market cap surpassed the $36 billion mark with a daily trading volume of $2.9 billion.
The crypto community has since been discussing the so-called XRP “mega breakout.”
However, another 60,000% increase in the XRP price does not look very realistic at this point. First of all, XRP’s market capitalization reached roughly $130 billion in January 2018, marking 600x growth over one year. At that time, the asset became the second-largest cryptocurrency after surpassing Ethereum’s (ETH) $110 billion market capitalization.
With a current market cap of $36 billion, another 600x surge for XRP’s market cap in the short term seems pretty unrealistic, given that the broader cryptocurrency market is wandering in highly volatile conditions.
According to data provided by Santiment, the XRP supply in profit has reached 87.32%, a level last seen in late March when the token was trading at around $0.635. This might increase the number of investors taking profit before the asset’s price faces correction.
Data from the market intelligence platform shows that whales have also started making moves amid the XRP price hike. Per Santiment, the number of whale transactions consisting of at least $100,000 worth of XRP rose from 526 to 811 unique transactions over the past 24 hours alone.
Moreover, the XRP Relative Strength Index is sitting at the 69 mark, according to Santiment data. This indicator shows that the asset is currently overbought at this price point, meaning a price correction due to short-term profit-taking is expected.
