Aaryamann Shrivastava
FXStreet
- XRP price is presently initiating bullish momentum after rising by 3% in the last 24 hours.
- Ripple is close to overtaking Binance Coin in terms of market capitalization, standing only $1 billion away.
- Ripple’s growth and Binance’s recent fiasco has reduced the difference to just 3%.
Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.
Daily Digest Market Movers: Ripple to Surpass Binance Coin valuation
Ripple has witnessed considerable growth since the beginning of the year, fuelled by the anticipation of a result of the lawsuit it was facing from the Securities & Exchange Commission (SEC). That ruling came in July in favor of the crypto asset, resulting in an astonishing rally. While this rally largely corrected in the following weeks, XRP still managed to retain most of the gains.
At the same time, Binance Coin was met with negative sentiment following the Binance fiasco. With CEO Changpeng Zhao (CZ) resigning and the exchange paying a fine of $4.3 billion to the government of the United States, the value of Binance Coin (BNB) took a dive.
Consequently, Ripple has now come close to eclipsing Binance Coin in terms of total market capitalization and stealing the spot of the fourth biggest crypto asset in the world. At the time of writing, XRP stands only $1 billion away from BNB, with a market capitalization reaching $34 billion.
Ripple and Binance Coin market capitalization
If the market continues to act in the same way as it has been, it may not be long before this 3% difference is erased and XRP replaces BNB.
Technical Analysis: XRP price continues uptrend
XRP price, trading at $0.6449 at the time of writing, is attempting to breach the $0.6448 resistance level. A successful test of this line as a support floor would boost demand and push the Ripple token toward $0.7000.
The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are both exhibiting the start of potential bullish momentum. The former is witnessing an uptick, while the latter observed a bullish crossover with the emergence of green bars on the histogram.
XRP/USD 1-day chart
If this retest fails or the sudden surge in Ripple interest causes FUD, panic or selling, XRP price would likely decline. This would result in a fall to $0.6000 or $0.5517 and invalidate the bullish thesis.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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