XRP surged to nearly $3 yesterday before making a slight adjustment. After months of sideways movement and little volatility, especially in the past few weeks, Ripple's native token finally made an aggressive move yesterday, breaking out of consolidation and surging to a new multi-month peak. Here are some possible reasons that could have led to this impressive price increase, pushing XRP close to $3.

Social Activity and the Network

Yesterday, we reported on a notable price surge that pushed XRP's price from around $2.3 to nearly $3 in just 36 to 48 hours. Although it could not break the $3 mark to surpass the all-time high from January 2018 and has slightly decreased, this price surge helped XRP surpass USDT in market capitalization.

Some analysts had anticipated this development, while warning that most traders would miss it. Santiment also considered this issue, outlining the reasons behind this strong surge.

The analytics company notes that this breakthrough comes at a time when the network behind this token is witnessing impressive growth, as evidenced by the increasing number of new wallets being created. More specifically, nearly 7,000 new wallet addresses have been created within 24 hours.

The second reason according to Santiment relates to the general interest of individual investors in this token on social media, where 5.5% of discussions about cryptocurrencies focus on XRP. This is the highest level since mid-March when the CEO of Ripple announced the end of the long-standing legal battle between the company and the U.S. Securities and Exchange Commission (SEC).

Whales and the Market's Resurrection

As XRP just started breaking out, CryptoPotato reported another plausible reason that may have pushed the asset's price higher. At that time, the number of large wallets holding at least one million tokens had risen to an all-time high of 2,743 (and 2,742 the next day).

The final reason we will discuss in this article is the overall market recovery. XRP is not the only cryptocurrency that has been consolidating for weeks. Bitcoin, the leading market coin, is also in a similar state despite some volatility due to the Israel-Iran conflict. However, the recovery exploded on Wednesday evening and led the entire market into the promised land.

After surging to a new record high of nearly $119,000 on Friday, many altcoins also followed suit, including XRP. As the first, largest, and arguably most important digital asset, BTC's volatility significantly affects the rest of the market.