The Ripple price jumped above a key resistance level as the momentum in the cryptocurrency industry remained. The XRP coin is trading at $1.2327, which is slightly below this week’s high of $1.3555. This brings its total market capitalization has jumped to more than $57 billion.
We are witnessing a rebirth of cryptocurrencies as their prices declined sharply in the past three months. Ripple, and other cryptocurrencies have rebounded substantially, pushing their total market capitalization to more than $2 trillion. This is notable since the market value was less than $1.2 billion a while ago.
There has been no direct catalyst for the ongoing Ripple price rally. Instead, the rally is part of the overall correlation between the coin and other altcoins like Ethereum and Cardano. At the same time, the volume of Ripple traded per day has been rising. Data compiled by CoinMarketCap shows that the volume of Ripple traded on Thursday was worth more than $6.7 billion. That was substantially higher than the $1.8 billion that were traded in the same day in July.
Another potential reason why the XRP price has risen is likely because of the rising demand of the coins. On-chain data shows that the number of large holders of the coin have not exited their trades. Additional data shows that the number of new holders has continued rising.
Ripple price prediction
In my last XRP price prediction, I argued that the coin’s price will likely keep rising in the near term. This view was accurate since the coin has jumped by more than 40% since then.
Now, turning to the daily chart, we see that the coin has risen to the 38.2% Fibonacci retracement level. It has also managed to rise above $0.7880 and $1.0777. The former was the lowest level in May and June while the latter was the highest level in late May and June.
The coin is still supported by the 25-day and 50-day moving averages while the MACD has been on a strong bullish trend. This week, the Ripple price also did what looks like a break and retest strategy. This is where it jumped above the resistance at $1.077. It then retested it, in what is known as a break and retest view.
Therefore, I believe that the coin will likely keep rising as bulls target its all-time high at $1.95. As a result, there is a possibility that the coin will rise to $2 in the near term. This view will be invalidated if the price declines below $0.5130.