Over the weekend, Ripple [XRP] surpassed Tether's USDT and flipped Solana [SOL] to become the third-largest cryptocurrency by market cap.
Ripple’s [XRP] market cap has surged past Tether’s [USDT] and Solana’s [SOL], making XRP the third-largest cryptocurrency. This development has surprised many, considering SOL’s strong performance earlier in the bull cycle.
However, XRP’s impressive rally is largely due to the anticipation of SEC Chair Gary Gensler’s resignation and the Biden administration’s pro-crypto stance.
Despite the massive bullish sentiment, CryptoQuant’s Woo Minkyu analysis suggests that whales may be preparing to book profits, as indicated by the spiking whale-to-exchange transactions. This observation aligns with past trends, where a massive XRP sell-off occurred after crossing above $2.
Minkyu highlights the possibility of a similar scenario unfolding, with whales accumulating XRP at lower prices and moving it to exchanges for potential profit-taking.
“The latest spike in whale-to-exchange activity coincides with XRP reaching a local price of around $2.3. This could indicate whales preparing for potential profit-taking or increased market activity.”
Moreover, the next Fib level is at $3, indicating that an additional 26% rally is possible if the bullish sentiment continues. However, the weekly RSI is flashing overheated signals, suggesting a potential price pullback.
If a correction occurs, the $2.36 and the previous cycle high of $2.0 could serve as crucial support levels.
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