Key Points
- XRP’s price has surged by over 17% in the last 24 hours, registering a six-year high.
- The cryptocurrency’s on-chain activity has reached new highs, leading to discussions on whether XRP could challenge Bitcoin’s dominance.
The cryptocurrency market is witnessing a significant upturn, with XRP demonstrating considerable strength. Its price has soared to $2.31, and the on-chain activity is hitting new records.
Can XRP Outperform Bitcoin?
The recent weeks have seen XRP rally powerfully, breaking through multiple resistance levels to trade at $2.31. The 200-day moving average (MA) at $0.62 and the 50-day MA at $0.87 have confirmed a bullish crossover, indicating an ongoing upward trend.
The Moving Average Convergence Divergence (MACD) mirrors this momentum, with the MACD line significantly above the signal line at 0.36. However, the Relative Strength Index (RSI) at 93 suggests that XRP was overbought, indicating a short-term correction before further growth.
Bitcoin Dominance and Transaction Volume
According to data from CoinMarketCap, Bitcoin’s dominance has decreased from 58.9% last month to 55.7%, hinting at a resurgence in altcoins led by XRP. Historically, Bitcoin dominance tends to decline during bull cycles as liquidity shifts to altcoins, allowing projects like XRP to gain market share.
Despite this, Bitcoin still has significantly higher transaction volumes than XRP. XRP’s transaction volume spiked to $8.8 billion on the 1st of December, the highest in months, but still lower than the $13.25 billion recorded by Bitcoin.
XRP’s on-chain activity, however, has seen a surge. Daily active addresses on the XRP Ledger have seen a significant spike, indicating rising participation and usage of the network.
Market sentiment around XRP is overwhelmingly positive, with social media mentions and discussions trending upward. However, to truly outperform Bitcoin, these metrics will need to maintain the momentum. As of now, Bitcoin remains dominant, and XRP is one of its challengers.