The crypto market is buzzing with excitement. XRP has surpassed Tether (USDT) in market capitalization, claiming the third spot among top cryptocurrencies. But is this victory sustainable? Let’s explore what’s driving XRP’s surge and what lies ahead.

XRP’s Rise: A New Crypto Powerhouse

XRP’s market cap hit $164.47 billion. This allowed it to overtake USDT. The token’s price jumped 9% in 24 hours. At its peak, it surged by 16%. This rally caught the eye of investors. However, on-chain data suggests the market is overheated. This raises concerns about the token’s future.

Still, XRP has a history of resilience. It often avoids sharp declines despite resistance. As a result, there’s hope it can maintain stability.

Profit-Taking Looms: Insights from On-Chain Data

Santiment reports that 95% of XRP addresses are in profit. Most holders bought at lower prices. This shows strong confidence. Yet, it also signals risk. Many may start selling to lock in gains. This could trigger a correction.

In the last 24 hours, 140 million XRP were sold on exchanges. Their value reached $387 million. Such sales reflect investor uncertainty. Moreover, they could push prices lower. But XRP has faced similar moments before. Instead of crashing, it often moves sideways.

Price Outlook: The $3.00 Challenge

XRP is currently trading at $2.78. This marks a strong gain. However, it failed to break $3.00. The bullish momentum is fading. If selling pressure grows, the price could drop to $2.65. In a worse scenario, it may hit $2.35. This would spark a broader correction.

On the other hand, a positive outcome is possible. If demand stays strong, XRP could reach $3.00. This would set a new five-month high. Much depends on investor confidence and market conditions.

What’s Next for XRP?

XRP’s future hinges on market dynamics. If major players sustain demand, the token could keep rising. However, on-chain data urges caution. Exchange sales and profit-taking pose risks.

Nevertheless, XRP’s triumph over USDT is significant. It highlights the token’s strength. This milestone shows its competitive edge. The coming days will reveal if XRP can hold its ground or face volatility.