Analysis: The price of XRP skyrocketed 91% in a month, or because of these three points

Original title: "Analysis: XRP price soared 91% in one month, there are three reasons"

Original source: Cointelegraph Chinese

< p>XRP prices are up 91% in the past month, and data suggests that these three fundamental factors may be responsible for the price breaking out of its current multi-year range.  

Over the past month, XRP  is up 91% in price and is now catching up to Bitcoin (BTC) and Ethereum (ETH). XRP Possible reasons for the rise in XRP include an increase in unique addresses, Ripple's buybacks, and possible new product launches .  

XRP/USD Weekly Chart  Source: TradingView.com

XRP Unique Addresses Increase

On-chain data can be used to describe the overall sentiment around the cryptocurrency as it accurately reflects the activity taking place on the blockchain.  In the case of XRP , with XRP  spiked in late November. On November 22, the trend was even stronger, with XRP  up 27% in one day.  

XRP Daily Address Surge  Source: Santiment

On-chain analysis company Santiment analysis The one-day increase in active addresses was the largest since May 1, analysts said. They wrote: The price of XRP  surged 27% today, in one day, on Ripple The number of unique addresses transacting on the network (24,408) is the highest since May 1. Active addresses increase with price for several reasons. First, the number of addresses hoarding XRP may increase its value. Second, there may be a general increase in user activity on the blockchain.

Ripple buyback may drive XRP price up

In Q3 2020, Ripple bought $45.5 million worth of XRP through its buyback program. According to Ripple, the plan is to support a healthy market.  Aggregate purchases were detailed at $45.5 million in the summary presented in the Third Quarter 2020 Report. In previous quarters, Ripple did not buy back XRP. The report reads: As noted in the XRP Market Report Q3 2020, Ripple is buying XRP and may continue to do so XRP to support a healthy market. Buybacks can lead to increased demand for assets on the buyer's side, whether it's stocks, commodities or cryptocurrencies.  While the $45.5 million may not be enough to have a significant impact on the value of XRP in the cryptocurrency exchange market, it may have boosted market sentiment around XRP.

Ripple may launch a new service

In early November, Ripple Labs filed a U.S. patent The Trademark Office (USPTO) applied for a trademark for a product called Paystring.  The trademark application describes Paystring as a product in the electronic financial services category for receiving and sending money transfers. It states: The Paystring trademark registration is intended to cover various categories of electronic financial services, including remittances and monetary gifts for receiving and paying fiat and virtual currencies over computer networks and monetary services for exchanging fiat and virtual currencies over computer networks. An exciting combination of new product launches, XRP buybacks, and on-chain data showing address additions may have been the main factor behind XRP’s recent rally to 16-month highs.

Therefore, XRP  Has been able to break out of two multi-year ranges on the higher time frame charts. Most notably, the weekly chart shows a clear breakout of a price level not seen since November 2018.

 

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