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XRP is showing great numbers as its weekly gains on the cryptocurrency market have surpassed those of Bitcoin (BTC) and Cardano (ADA). The altcoin has shown resilience as it stayed above the $2 level despite the volatility in the broader crypto space.
XRP price tailwind
According to CoinMarketCap data, the XRP price over the last seven days has soared by 18.46% as it continues its push for higher values. Notably, despite this gain, the coin is yet to meet investors’ expectations of regaining the $3 target, from where it slipped following the crypto market crash in October.
However, the gain is significant enough to outshine the flagship crypto asset, Bitcoin. Week-to-date, Bitcoin has managed a 13.01% climb, which is 5% less than XRP’s gain. Similarly, Cardano’s performance was single-digit growth at 8.47%.
XRP’s outstanding performance suggests the asset has stronger momentum than BTC and ADA in the last week of trading. The coin has demonstrated more potential to rebound from the recent fluctuations it experienced.
However, there is a twist to this rally for XRP. Investors have remained cautious and refused to actively engage in trading the coin on shorter time frames. As of press time, trading volume has declined by 20.33% and stands at $3 billion.
If market participants continue to stay away from transacting the coin and volume does not flip green, XRP might lose its momentum. Notably, for XRP’s price to continue on a bullish trajectory, demand for the coin needs to spike.
In light of low demand and to maintain price gains, the community had to employ the burn mechanism to reduce the circulating supply. The deflationary rate jumped by over 31% as the community was determined to halt the sell-off of XRP.
Technical outlook points to potential $3 breakout
Meanwhile, technical data indicates that XRP could be prepping for an over 13% rally as the chart setup signals upside potential.
The Bollinger Bands show that XRP has been stuck in the midbands, with XRP appearing unwilling to break out just yet. The coin is, however, directly under a possible seasonal breakout that could push prices closer to the $3 level.
In the broader crypto space, XRP recently made the list of the most popular tokens on the market. Kraken listed it in third place behind Bitcoin and Ethereum in a five-asset list.
BNB Chain and Solana completed the short list of the most popular assets, according to Kraken’s data.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team