In three days, the price of XRP has surged by 27%. XRP is the native crypto coin for a blockchain network known as Ripple. This rally has been experienced at a time when there is much that has been happening in the market. In the past couple of days, leading virtual coins have been struggling with the US Dollar. All these are happening amidst a great market pullback.
Possible Factors For The Price Surge Of XRP
XRP is a crypto coin that is majorly used on the RippleNet by the financial organizations to procure international payments. Over the time, the price trend of this coin has witnessed high degree of correlation with fresh entrants in the main ecosystem of RippleNet. The value of any network for payment settlement usually originates for the financial organizations. It also comes from the payment processors that apply the protocol to send and get information. It then establishes a network effect. As such, additions of leading financial service providers onto the XRP’s blockchain solutions is one of the leading factors for this latest price surge.
A Similar Case In the Past
On June 17th, for instance, Ripple introduced a strategic partnership with MoneyGram, a major remittance service provider. When this happened, the price of the coin went on to grow from $0.26 to $0.31 in a period of about 48 hours. This represented about 29%. At that time, Brad Garlinghouse, Ripple’s CEO stated that the strategic partnership would enable MoneyGram to greatly improve its operations. It would also allow users all over the world to benefit from the increased efficiency.
Going Back To The Technicals
It is a fact that strategic partnerships of Ripple and the maximized usage of XRP by the financial organizations affect the price trend of this fast-rising coin. However, analysts, in the past week, have turned to the technicals to support the latest upside movement of the coin. This quarter, Ripple has not recorded any high profile strategic partnerships when compared to the second quarter of 2019. On the other hand, RippleNet has also not witnessed the entry of new large-scale financial institutions that will apply XRP to process the payments. However, XRP has begun to show the oversold conditions and contributes to the main recovery of this asset. This is subsequent to the large-scale fall against the US dollar from the records it had earlier set.
The Fate Of The Crypto Market
It still remain not so clear whether the dropping volume in the virtual currency market will soon come to an end. It is also not clear whether the growing sell pressure on the leading coins might affect the upside movement of other assets like XRP. Analysts have also proved an entirely bearish outlook on the short-term trend of the virtual coin market.