Over the past 24 hours, major cryptocurrencies in the global market including Bitcoin, Ethereum and EOS increased by 2 to 5 percent, as Ripple led the market with a solid 10 percent gain.
Since September 18, within 48 hours, the price of XRP, the native cryptocurrency of the Ripple blockchain network, rose by more than 36.5 percent.
Technical analysts in the cryptocurrency community have expressed their optimism towards the trend reversal demonstrated by XRP in the last 24 hours.
Unlike previous rallies of XRP, the abrupt increase in the price of RIpple was not triggered by a specific series of events. Rather, similar to the rapid recovery of ETH, the native cryptocurrency of Ethereum, it is likely that the steep decline in the price of XRP throughout July and August led the market to demonstrate oversold conditions.
Since late June, XRP experienced an intensified movement on the downside in comparison to other major cryptocurrencies like Bitcoin. The price of XRP was around $0.54 on June 21 and within two months, XRP fell to $0.29, by 46 percent.
Meanwhile, during the same period, the price of Bitcoin only fell by 9 percent, from $6,700 to $6,100.
In the past seven days, social media activity of the keywords XRP and Ripple increased significantly, possibly due to Ripple’s announcement of a new cryptocurrency product by October. Increasing social media activity around Ripple likely led to a rise in hype of XRP.
Marcus Treacher, the global head of strategic accounts at Ripple, recently revealed that RippleNet has experienced rapid expansion throughout 40 countries, deploying a faster and transparent payments system internationally.
“RippleNet’s newest corridors have a combined potential market that totals over $2 Billion in inflows over the last year: InstaReM and RationalFX opened up new corridors from the United Kingdom to Malaysia, Vietnam, Indonesia, Sri Lanka and Bangladesh. Remitr and FlutterWave established a RippleNet corridor to Nigeria from Canada, the first connection on RippleNet in Africa. BeeTech and InstaReM created corridors from Brazil to Spain, Italy, Germany, France and Portugal,” Treacher said.
A combination of RippleNet’s rapid growth, Ripple’s scheduled announcement of a product release in October, and a short-term trend reversal demonstrated by the cryptocurrency exchange market led XRP to increase by such a large margin in a short period of time.
On September 19, CCN.com reported that the volume of Bitcoin will have to remain above the $4 billion mark in order for the dominant cryptocurrency to sustain momentum throughout the upcoming days.
Over the past 24 hours, the volume of Bitcoin has remained above $4.2 billion while the volume of the global cryptocurrency exchange market increased from $10 billion to $12 billion.
With the volume of the market and prices of both major and small market cap cryptocurrencies recovering, a gradual increase in the valuation of the crypto market is expected throughout September.
Featured image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 5:59 PM UTC