In the past week, a cryptocurrency increased by 44% in its price, reaching a value of US$0.55, a value which had not been reached since May this year.
Having already spent a week of the long-awaited Merge within the ecosystem, we analyze the performance of the prices of the main cryptocurrencies. According to CoinMarketCap, Bitcoin had a negative return of -4.84%, reaching $18,700 while Ethereum fell 10%.
However, if we evaluate the performance of the $XRP coin, Ripple. We noticed that in the last week its price increased by 44%, reaching a value of US$0.55, a value which it had not reached since May of this year. Ripple is a cryptocurrency network that aims to bring fast and low-cost payments to financial institutions. XRP is the native cryptocurrency that powers this, which was initially launched in 2013 to raise funds for the company.
About XRP, and why it has recently increased its price
XRP is a digital currency issued and managed in an accounting system inspired by Bitcoin technology. It is an open-source project, but it has been managed by a private company since its inception, 7 years ago. This is where the firm Ripple Labs comes into the equation, a business that has been building a network of payments and international exchange for banks and other financial services.
The price of XRP has risen particularly this week, driven by developments in the United States Securities and Exchange Commission (SEC) case against Ripple. The US institution has an ongoing lawsuit against the company for the alleged unregistered sale of a security. In this case, XRP.
XRP’s biggest price move has come just after new information came to light in the SEC-led case against Ripple. It is about the introduction of a request so that, instead of going to trial, a sentence is issued with the available data.
At the moment it is a hopeful situation for Ripple Labs, the community that supports said cryptocurrency is very anxious to wait for the resolution of the ruling by the court.
The news has clearly impacted the price of XRP. Precisely this Thursday, after that approval was reported, the currency rose more than 23% on the day. And although the movement of the last few weeks has been very positive, traders are not confident and foresee a strong fall in the future.
It could be a “buy the rumor, sell the news” phenomenon. This, in trading, refers to how the market turns bullish in the face of an imminent event that, when it arrives, leads to a wave of sales and a bearish movement of the asset in question.
XPR Positions as Sixth in the Cryptocurrency Market
XRP currently ranks sixth by market capitalization of all cryptocurrencies, and fourth place not counting stablecoins.
Finally, if we analyze the current sentiment of the market, we use the “Fear & Greed Index”, which through the analysis of many variables determines if the general sentiment of the market in relation to Bitcoin extends more towards fear or greed. Generally, with low prices, the index shows values related to the feeling of fear, while, with high prices, greed grows.
Today we find ourselves with a feeling of extreme fear. This value remains the same since the last month.
By Audy Castaneda