Embarking on a digital journey through the vibrant world of cryptocurrencies, we encounter XRP, a digital asset that has been rallying recently, partly due to the conclusion of a court case involving Ripple. As a result, it’s been outperforming its peers in the digital currency realm with strides that could potentially reshape the cryptocurrency rankings based on market capitalization.

Surging XRP The Game Changer in Cryptocurrency Ranking

As it stands, if XRP’s current bullish trend continues, it might very well eclipse Tether (USDT), which is currently the third-largest digital asset by market capitalization. This would put XRP just behind the two crypto giants, Bitcoin (BTC), and Ethereum (ETH).

Data sourced from CoinMarketCap as of March 25, shows Tether’s market cap at $143.78 billion while XRP stands at $141.45 billion, exhibiting a hairline difference of just $2.33 billion.

Understanding the Implications of XRP Overtaking USDT in Market Cap

Bypassing Tether might not hold much significance for XRP because Tether, being a stablecoin, isn’t influenced by organic market growth as much as it is by supply and demand dynamics.

Tether plays the role of providing liquidity stability and occasionally serves as a hedge against market volatility, but it’s not considered an investment asset whose value appreciates.

For a significant leap, XRP needs to overtake a heavyweight like Ethereum, which boasts a substantial market cap of $249.03 billion. A triumphant overtake would signal increased adoption and significant price appreciation for XRP.

Interestingly, most of XRP’s current market cap influx occurred in the past year, with an astounding increase of $100 billion recordings.

Owing to the nearing resolution of its legal battle with the U.S. Securities and Exchange Commission (SEC), the XRP community is fueled with optimism for continued growth. Detractors, however, point out regulatory uncertainty as a factor that contributed to XRP’s lengthy consolidation below $1 until it surged after Donald Trump’s political resurgence, who is viewed positively for digital assets.

Price Analysis of XRP

At the moment, XRP trades at around $2.45, with a modest gain of approximately 0.17% over the past 24 hours. On a weekly basis, there is an almost 10% hike in the asset’s value.

Crypto expert Dark Defender, in a post dated March 24, hinted that XRP’s price movement is steering towards the north with $2.75 as the next significant level.

Despite potential minor resistance at $2.55, the support around $2.42 could contribute to maintaining the bullish momentum. Overcoming these short-term hurdles could pave the way for a sizeable rally towards $5.85. This prediction aligns with Fibonacci extension levels and wave structure analysis.

Even though XRP’s recent price movement mirrors the subdued broader crypto market, the overall sentiment is bullish. This optimism is solidified by the 50-day simple moving average (SMA) of $2.39 and 200-day SMA at $1.72 suggesting an upward trend. 

Is XRP a viable long-term investment?

As with any investment, a long-term commitment to XRP requires thorough analysis of the current crypto market trends, its development updates, and the competitive positioning of XRP. It has displayed an upward trend recently and has gained significant attention, promising potential for future growth.

What is the significance of XRP surpassing Tether in terms of market capitalization?

Although the overtaking of Tether by XRP may not have substantial implications, due to the nature of Tether as a stablecoin, it is still a momentous achievement for XRP. It signifies positive price appreciation and potential growth, which could be indicative of the increased acceptance of XRP.

What factors could influence XRP’s price?

The price of XRP, like other cryptocurrencies, is influenced by a variety of factors. These include general market trends, regulatory news (such as the SEC case), and shifts in demand and supply. The sentiment towards digital assets and technological improvements in the XRP blockchain can also impact its price.

This extensive guide to XRP paves your way through its underlying technology, investment potential, and market position. The FAQs given below provide further insights to aid your informed decision-making process.