XRP has been flying high today, maintaining much of its recent gains after surging to its most in four months late last night.
The digital token reached as much as $0.4419 at roughly 21:30 UTC yesterday, according to CoinMarketCap.
At this point, XRP was trading at its highest since late December, having surged 32.5% in 24 hours and more than 47% over the last week, additional CoinMarketCap figures show.
Since then, the digital asset has pulled back somewhat, but was still trading at roughly $0.4262 at the time of this writing.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
‘Only A Matter Of Time’
John Todaro, director of digital currency research for TradeBlock, described XRP’s recent bullishness as inevitable.
“You had bitcoin prices rallying recently while alt-coins had seen only modest gains in comparison,” he noted.
“Bitcoin dominance (the measure of bitcoin’s market cap relative to the 5 largest tokens) had reached its highest level since September 2018.”
“Given the recent momentum in bitcoin, it was really only a matter of time before traders diversified into the largest alt-coins, especially as large cap alt prices remained depressed relative to bitcoin,” said Todaro.
XRP, in particular, did not enjoy the same price appreciation that many other altcoins (digital currencies other than bitcoin) did during altseason, eToro analyst Mati Greenspan wrote in his latest newsletter.
As a result, it may have been well-positioned to enjoy some notable gains.
Retail Interest Returns
Another major factor that analysts cited as driving XRP’s recent price appreciation was a resurgence in the interest of retail investors.
“As prices have risen and traditional media outlets highlight the price rise, we have seen retail traders begin to re-enter the market,” said Todaro.
Charles Hayter, cofounder and CEO of digital currency data platform CryptoCompare, offered a similar point of view, stating that the “retail crowd” has “targeted” XRP since it lagged many other digital currencies during the latest rally.
Todaro also mentioned interest in the Coinbase app, emphasizing that it was “trending on the app store over the past few days.”
“Retail traders and new entrants into the digital currency market have historically favored adding XRP positions over other assets,” he emphasized.
Disclosure: I own some bitcoin, bitcoin cash and ether.