XRP Overtakes Tether to Become the Third-Largest Cryptocurrency as Bitcoin Struggles with $100K Resistance

XRP (XRP-USD) has made a stunning leap in the cryptocurrency market, overtaking Tether (USDT-USD) to claim the position of the third-largest cryptocurrency by market capitalization. This surge in XRP’s price comes as Bitcoin (BTC-USD) faces a significant challenge at the $100,000 mark, where a massive “sell wall” is preventing further price movement and limiting its growth potential.

XRP Surges 18%, Reaches $2.40

XRP’s price has skyrocketed, jumping over 18% in just 24 hours and reaching a price of $2.40, a level not seen in years. This impressive increase has pushed XRP’s market cap to $139 billion, surpassing Tether, which has long held the third spot in the cryptocurrency rankings. The cryptocurrency’s 30-day price surge of 375% has sparked renewed interest in XRP, particularly among retail traders looking for an alternative to Bitcoin.

Retail Traders Fuel XRP’s Resurgence

Retail traders are playing a pivotal role in XRP’s remarkable recovery. According to Mena Theodorou, co-founder of Coinstash, “This [XRP] comeback is making waves across the market, potentially signaling the return of retail traders and investors to the crypto market.” Theodorou pointed to the rising popularity of XRP on platforms like TikTok, where the token is gaining traction among younger investors.

The surge in retail interest has been further fueled by rumors surrounding Ripple, the company behind XRP, including speculation about the potential approval of a Ripple-backed stablecoin and the possibility of an XRP exchange-traded fund (ETF). These developments have contributed to XRP’s growing appeal as an altcoin investment.

Regulatory News Boosts XRP’s Price Surge

In addition to retail enthusiasm, favorable regulatory news has provided a boost to XRP’s rise. Markus Thielen, founder of 10x Research, told CoinTelegraph that the delay in South Korea’s crypto capital gains tax, initially set for 2021, has helped create a more favorable environment for speculative trading. The tax delay, now extended until 2027, removes a significant hurdle for investors and has provided a favorable backdrop for XRP’s recent climb.

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Thielen commented, “This delay removes a critical hurdle to the crypto market,” adding that it has contributed to the favorable market conditions propelling XRP higher.

Bitcoin Faces Resistance at $100,000

While XRP enjoys a surge, Bitcoin has struggled to break through the critical $100,000 price level. The leading cryptocurrency has encountered a massive sell wall at this level, worth $384 million, which has prevented further upward movement. A sell wall is a large volume of sell orders placed at a specific price point, acting as a barrier that resists price increases.

Bitcoin’s inability to surpass this psychological barrier is hindering its growth, despite positive market sentiment and increased investor confidence. Analyst Valentin Fournier from BRN explained, “Despite strong market catalysts and growing investor confidence, Bitcoin continues to struggle with the $100K psychological barrier.” Fournier noted that the sell wall consists of more than 4,000 BTC in sell orders, making it a formidable resistance point.

XRP Benefits as Bitcoin’s Market Dominance Declines

Bitcoin’s struggles have led investors to look for opportunities in altcoins, and XRP is one of the main beneficiaries of this trend. As Bitcoin’s dominance in the market has fallen from 61.5% to 56.5% since November 21, XRP has seen a surge in capital inflows. This shift in investor sentiment has allowed XRP to capitalize on Bitcoin’s difficulties and gain ground in the rankings.

At the time of writing, XRP is trading at $2.2644, up more than 18% in the past 24 hours. As Bitcoin’s dominance wanes, XRP and other altcoins are becoming increasingly attractive to traders seeking new opportunities in the crypto market.

Looking Ahead

The surge in XRP’s price highlights a shift in investor sentiment and underscores the growing importance of alternative cryptocurrencies as investors search for potential gains beyond Bitcoin. While Bitcoin continues to face resistance at the $100,000 level, XRP’s rise signals the possibility of further capital rotation toward altcoins in the coming months.

As market dynamics evolve and retail traders continue to play an influential role, XRP’s continued ascent may signal a broader trend of diversification within the cryptocurrency market, with altcoins gaining more prominence as investors look beyond Bitcoin’s dominance.