XRP has reached the $3 mark for the first time since 2018, attributed to heightened interest in altcoins and significant trading volumes. However, the price has retracted due to substantial profit-taking from institutional investors.
Record Surge of XRP
XRP surged past $3 due to renewed interest in altcoins and inflows into spot ETFs. However, its growth quickly stalled as profit-taking began.
Impact of Institutional Investors
The substantial rise led to a daily trading volume that more than doubled. Institutional investors played a significant role in the market, booking profits after the sharp increase. So far, there have been no official comments from Ripple, with executives including Brad Garlinghouse and David Schwartz.
Future of XRP and the Altcoin Market
The market showed signs of liquidity stress, with a temporary support level at $2.75 that must be held to avoid further downside. Analysts emphasize the importance of the $2.75 level to prevent further declines.
The XRP rally may serve as a focal point in market discussions, particularly in light of the influence of institutional investments and legal implications in the SEC v. Ripple case. Analysts stress the necessity of holding the $2.75 price level to prevent further losses.
