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XRP increased by 98% in 7 days: what is pushing the Ripple token up?

XRP has skyrocketed and has shown results in a week that it hasn’t been able to achieve in the past few months. What is behind the explosive growth of the token?

XRP doubles its value in a week

The last week turned out to be a “runway” for XRP: the Ripple token rises in price literally by the day, updating monthly highs. XRP was up about 20% yesterday. If you look in the context of the last 7 days, in general, XRP has risen in price by 98% and at the time of this writing is trading at $0.6.

The rise in XRP prices sharply posed a question – what drives the price of the token? There is no obvious external catalyst in the form of new events related to the activities of the Ripple company. However, many can argue with this because, on November 23, the Ripple blog published information about the inclusion of the holding company “Bank of America” to the list of RippleNet participants. It is not entirely correct to consider this news as a driver for XRP since there is information that this collaboration concluded in March 2019. Is XRP riding on old news?

Following in the footsteps of Bitcoin

Most analysts are convinced that the driver for the XRP price jump was the prevalence of optimism in the crypto market. Today, the first signs of an outflow of capital from BTC to altcoins are already visible. That movement is taking place against the backdrop of the consolidation of Bitcoin before the next assault on a new height. Experience shows that the rise in the price of alts during the Bitcoin fluctuation is a completely natural process for the cryptocurrency market.

Today, Bitcoin is testing new highs in the region of $19,000, maintaining its bullish momentum for the past three weeks. Some altcoins joined the bitcoin bull run at the very beginning of the journey, while XRP did not succumb to the general hype and only “shot” last week.

Also, the demand for XRP can be fueled by the positive dynamics on the XRP technical charts. In particular, analyst Josh Olshevich pointed to the “technical breakout” of XRP, referring to the formation of a “reverse head and shoulders” pattern on the price chart. He predicts that the bulls will be able to push the XRP price to new highs. 

XRP is in the overbought zone now; in any case, we will see a pullback to the 55-60 cents area. We all remember the Ripple run in September 2018, when it went from 30 cents, in three days, to 90 cents. The current rally may be no exception, but as soon as we reach the limit of bullish expectations, a change in interest in this currency will be obvious. Also, the price can be driven up by the stop levels set for short positions. The dynamics across the entire market is positive, and everyone wants to get a % of the profit from the market, so everyone tries to get into positions as much as possible, which drives up not only Ripple but other alts as well.