3 reasons why XRP is among the market leaders with a 7.6% pump
XRP Leads the Day in the Cryptocurrency Market as Demand for Global Payment Tools Soars
XRP has surprisingly become a market-leading cryptocurrency, with a price increase of almost 8% in the last 24 hours. While there are usually speculative or technical reasons for the growth, there is a strong fundamental cause behind the asset’s long-term growth, per CoinMarketCap†
XRP Reaches Support Zone
XRP’s technical terms as a tradable asset were like other cryptocurrencies out there as it dropped to $0.7 after a rapid price surge. But as other assets remain in correction, XRP bounced out of the local support zone around $0.69.
Source: Trading Display
Right now, XRP is moving in the range that has formed since February, with the bottom of the range staying around $0.69 and the top at around $0.86.
Entering the overbought zone
In addition to receiving a boost in purchasing power after hitting the support zone, XRP was also heavily oversold on intraday timeframes such as four hours. The value of the Relative Strength Index fell to around 20, making XRP a highly oversold asset, usually leading to a short-term bounce.
For now, the asset is no longer overbought on the four-hour time frame, reaching one of the first resistance lines on the chart, the 50-day moving average.
Demand for XRP as a means of payment may rise
Some investors and traders stated that amid the rate hike cycles and the rapid decline in USD value, XRP will be used more often by investors as a decentralized payment tool since it was originally created for global payments. This implies that the company behind it plans to make XRP a rival for fiat money.
The major advantage of XRP over USD or any other fiat currency is its transaction speed, low fees, and the ability to ship worldwide at no additional cost.