Confident XRP fuels crypto optimism

Market picture

The cryptocurrency market has gained 3% in the last 24 hours to reach the $3.40 trillion level, which has been the centre of the range for the last four weeks. This was a key resistance level at the end of December. Further market movement will be an important sentiment indicator, but we will have to wait until the US inflation data is released.

Bitcoin is also currently undergoing a local test as its price surpasses the $97,000 mark. It is now challenging the 50-day moving average from below, a level it dropped beneath just over a week ago. The rally, with global equity indices relatively neutral, indicates a gradual recovery in risk appetite.

XRP is showing a much more dynamic recovery after the December sell-off. The courts are increasingly inclined to the company's arguments, pointing out the excessive rigidity of the SEC. It is also impossible not to notice the attractive technical picture. Active buying returned to XRP after touching the classic 61.8% retracement level from the November-December rally. The reversal also coincided with an approach to the 50-day moving average, unlike many leading altcoins that have fallen below this line. At current levels of $2.84, XRP has returned to the December highs. A further move higher would trigger a Fibonacci extension pattern with a potential target of $4.40.

News background

Companies buying the first cryptocurrency on the balance sheet, like MicroStrategy, is an 'overlooked megatrend' that could 'lift the whole market', according to Bitwise CIO Matt Hougan. He predicted that "hundreds" of companies will buy bitcoins for reserves in the next 12 to 18 months.

According to Fundstrat co-founder Tom Lee, Bitcoin will be one of the most investable assets in 2025. He reiterated his previous prediction that the first cryptocurrency could reach $250,000 in 2025.

According to WuBlockchain, the volume of spot trades on centralised exchanges (CEX) grew 139% to $18.38 billion in 2024. The total volume of crypto derivatives trades was up by 91% to $53.24 billion. Finery Markets calculates that trading volume in the over-the-counter (OTC) crypto market has increased by 106% in 2024. Institutional demand, bitcoin's new ATH, and the US election were the main drivers of growth.

The TON Foundation, the organisation behind the development of the TON blockchain, elected a new president and announced a "strategic course" to expand its operations in the US.