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XRP, one of the leading alternative cryptocurrencies, managed to climb to the $0.59 level earlier today, reaching its highest price point since April.
According to cryptocurrency analytics platform Santiment, this surge has been primarily driven by surging levels of token holdings among whales and sharks that own more than 100,000 XRPs.
The firm has noted that "a turning point" in accumulation took place last August.
Dan BurginAccording to data provided by the CoinGecko cryptocurrency ranking website, XRP recorded a 10% spike over the past 24 hours, vastly outperforming other major altcoins. The Ripple-affiliated token is currently changing hands at $0.5903 after reaching an intraday high of $0.5921. The cryptocurrency is valued at $32.8 billion, which makes it the eighth most valuable digital asset by market capitalization.
Despite some impressive gains, there are some worrying signs that market participants would want to pay attention to. For instance, the XRP token recently formed bearish divergence. This means that the price managed to record higher highs while the oscillator is forming lower peaks. This could possibly mean that XRP's momentum is weakening. Bearish divergence could end up being a bad omen for the token.
As reported by U.Today, the XRP cryptocurrency is currently experiencing elevated levels of FOMO following its recent price spike. However, there are also risks that are associated with excessive exuberance.
It is not immediately clear why XRP recently experienced such a substantial rally.
Last week, CME Group launched real-time indices as well as reference rates for the Ripple-linked cryptocurrency.
Arman Shirinyan
Dan Burgin