Ripple Price Rallies to Highest Since 2018 — Here is Why?

The price of Ripple has rallied as the digital asset at last found some spark and is now playing catch up with Bitcoin. What are the plausible reasons for the XRP rally?

November 24, 2020 | AtoZ Markets – Over the past week, Ripple (XRP) has risen in price by 142.3%. The cryptocurrency broke the maximum since September 2018 level of $0.4974 on Sunday, November 22.

At the time of writing, XRP is trading at $0.6.

The market capitalization of Ripple has risen to $28 billion. According to CoinMarketCap, for the month, growth was 171.8%.

Why is Ripple’s XRP rallying?

According to analysts at Santiment, the likely catalyst for the XRP rally was an increase in the number of daily active addresses. On November 22, the cryptocurrency rose in price by 27% against the background of this indicator reaching its highest value (24,408) since May 1.

Another potential reason that gave rise to the token could be the activity of the developer company Ripple Labs. In its third-quarter 2020 report, it reported a $45.55 million acquisition of XRP as part of its buyback program to maintain healthy markets.

Read also: Ripple Executive Says XRP is Not Competing With CDBCs & Stablecoins

In November, Ripple Labs filed a trademark application with the United States Patent and Trademark Office for a product called Paystring. It is described as a tool for receiving and sending money transfers.

The new function for the execution of Ethereum smart contracts, available on the Ripple blockchain since November 18, could influence the mood of traders. We are talking about a solution called Hooks, the launch of which was announced by the main developer of the project Wits Wind.

Ripple Labs also released a new version of the XUMM Wallet payment application.

The XRP rate could be positively affected by the generally positive sentiment in the cryptocurrency market. Bitcoin is currently trading at $18,973.

Bitfinex Hourly BTC/USD Chart by TradingView.

Recall that on November 23, Ripple opened the vacancy of a senior director for interaction with central banks as part of work on projects for digital currencies of regulators.

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