XRP price soared 91% last month, and the data shows these three fundamental factors may be behind the break over the current multi-year range.
Last month, the price of XRP rose 91% as the digital asset finally found a spark and is now catching up with Bitcoin (BTC) and Ether (ETH). . The likely catalysts for the XRP rally are the surge in unique addresses, buybacks from Ripple, and the possibility of a new product release.
On-chain data can be useful to represent the general sentiment regarding a cryptocurrency as it accurately reflects the activity taking place on the blockchain.
At XRP, the addresses that interact with XRP were increased at the end of November. The trend picked up when the cryptocurrency rose 27% on a day in November. 22nd.
Analysts at Santiment, an on-chain analytics firm, said the increase in active addresses in one day was the largest since Jan.. May. They wrote:
Active addresses can rise at the same time as the price for several reasons. First, the number of addresses that XRP accumulates could increase the value spikes. Second, there may be an overall surge in user activity on the blockchain.
In the third quarter of 2020, Ripple bought $ 45. XRP worth 5 million in a buyback program. The company described the initiative as a step in supporting healthy markets.
The sales summary listed in the third quarter 2020 report shows total purchases of $ 45. 5 million. In the previous quarters, Ripple did not buy back XRP. The report reads:
A buyback can cause the buyer’s demand for an asset to increase, regardless of whether it is stocks, commodities or cryptocurrencies.
Though $ 45. 5 million may not be big enough to significantly affect the value of XRP in the cryptocurrency market. This could have improved market sentiment around the asset.
At the beginning of November, Ripple Labs registered a trademark for a product called Paystring with the U.. S.. . Patent and Trademark Office (USPTO).
The trademark application describes Paystring as a product in the category of electronic financial services for receiving and sending money transfers. It’s called:
The coincidence of the new release excitement, XRP buybacks and the rising address in the on-chain data could be the main reasons for XRP’s recent rally to a 16-month high.
As a result, XRP was able to break out of two multi-year areas in the high-time frame charts. In particular, the weekly chart shows a clear breakout to a price level that it has not seen since November 2018.
Ripple, Cryptocurrency, Bitcoin, Ethereum, Central Bank Digital Currency
World News – UK – XRP Price Up 91% In One Month Due To 3 Fundamental Factors
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