XRP has risen 91% in the last month as digital assets have finally gained a spark and are now capturing Bitcoin (BTC) and Ether (ETH). The potential catalysts for XRP growth are the increase in unique denominations, repurchases from Ripple and the possibility of a new product launch.
The number of unique XRP addresses is increasing
Data in the chain can be useful for describing public opinion about cryptocurrency, as it accurately reflects the activity that takes place in the blockchain.
In the case of XRP, headlines about XRP engagement increased at the end of November. The trend intensified when the cryptocurrency rose by 27% in one day on 22 November.
Analysts at Santiment, a web analytics firm, said a one-day increase in active headlines was the largest since May 1, writing:
“The price of Ripple is up 27% today, and the number of unique addresses traded in dollars on the XRP network in dollars in one day (24,408) was the highest since May 1,” he said.
Active headlines can increase along with the price for several reasons. First, the number of addresses that XRP accumulates can increase the value. Second, there may be a general increase in blockchain user activity.
Ripple repurchases can increase XRP
In the third quarter of 2020, Ripple acquired XRP worth $ 45.5 million as part of its repurchase program. The company described the initiative as a step towards supporting healthy markets.
The sales summary included in our Q3 2020 report shows that total purchases were $ 45.5 million. In previous quarters, Ripple did not buy out XRP. The reports say:
“As mentioned in the second quarter XRP Markets Report, Ripple is buying – and possibly continuing to buy – XRP to support healthy markets.”
Repurchases can increase the buyer’s demand for an asset, be it stocks, commodities or cryptocurrencies.
While $ 45.5 million may not be large enough to significantly affect the value of XRP in the cryptocurrency market, it may increase the market sentiment for the asset.
Ripple may launch a new service
In early November, Ripple Labs registered a trademark for a product called Paystring with the U.S. Patent and Trademark Office.
The branding app describes Paystring as a product in the category of online financial services for receiving and sending transfers. It says here:
“PAYSTRING trademark registration is intended to cover the categories of electronic financial services, ie cash services for receiving and issuing transfers and monetary gifts in paper and virtual currencies through a computer network and exchange of paper and virtual currency through a computer network.”
The composition of the hype around new product launches, XRP buybacks and positive headlines shown in the series data could be important drivers for XRP’s recent rally to a 16-month height.
Thus, XRP managed to break out of two perennial areas on the charts with higher time frames. It should be noted that the weekly chart shows a clear breach of the price level, which has not been seen since November 2018.