This week, the cryptocurrency market was dominated by the XRP token from Ripple Labs as a result of an important decision made by the U.S. District Court for the Southern District of New York. The court’s ruling that XRP token sales made via algorithms and on exchanges do not qualify as investment contracts caused XRP’s price to soar. The asset had a 73% rise, which ranks as the second-largest day gain in its history.
The remarkable growth of XRP eclipsed Bitcoin’s and Ether’s rather subdued fluctuations, which saw changes of -0.33% and 2.7%, respectively. As a result of the increase, XRP’s market capitalization surpassed Binance Coin (BNB) and rose to fourth place among the biggest crypto assets, reaching $41 billion. Despite being much below its record high of $3.38, the decision effectively revalued the asset.
The relative strength index (RSI) for XRP hit 88 before retracing slightly to 80, levels that are often associated with overbought conditions. A usually overbought asset is one with an RSI reading over 70. The reading for XRP is 88, which ranks 10th highest in its history. In the past, when XRP’s daily reading fluctuated between 79 and 81, the asset had an ensuing increase of 29.5% during the ensuing 30 days.
Investors must now decide if the RSI for XRP will continue to fall or whether the decision signals a fresh start for the asset, perhaps resulting in long-term positive momentum.
Following its uptrend, XRP saw a little reversal during Friday’s trading session, falling 15% along with the larger cryptocurrency market. Ether and Bitcoin also saw declines, dropping by 4.2% and 4.6%, respectively.
The CoinDesk Market Index (CMI), which increased 6.8% for the week, reflecting the rise of XRP. 172 out of 186 of the CMI assets completed the week in the green. With a 48.6% rise, Stellar Lumens (XLM) was the second-best performer in the CMI. As a result of their historical association, XRP and XLM often exhibit similar behavior.
Decentralized Finance (DeFi) led the CMI sectors with an increase of 11.4%. LQTY (41.9%), COMP (28.8%), and SNX (28.7%) were the top three DeFi performances. It’s interesting to note that the currency sector, which comprises XRP and XLM, trailed behind due to Bitcoin Cash’s -3.8% loss and 2.9% gain on Bitcoin, respectively.
Owners of Bitcoin and Ether may still be content despite XRP and XLM dominating the show. The CoinDesk Indices’ trend indicators for both assets continue to show “significant uptrend” movement. The phase of Bitcoin has now lasted for 23 days straight, while Ether has been alternating between “uptrend” and “significant uptrend.” The late Friday decline in both assets, meanwhile, may cause their present signal to be downgraded.
