Ripple price explodes – XRP rises above 100% in 7 days
Ripple (XRP) price analysis: The picture shows a ripple coin with a price chart.
Ripple could gain quite a lot in the last days with its native crypto currency XRP. The XRP price has not only increased by about 100% within the last 7 days, but has also reached by Crypto Genius a new record high in daily trading volume. XRP has thus overtaken Tether again and made it to 3rd place in terms of market capitalisation.
Ripple with XRP on the advance
For a long time the XRP course did not move. In the meantime not only the Bitcoin course has exploded, but also many DeFi tokens. Now the hype has also reached the old friends from 2017.
The recent XRP price increase could mean a trend reversal for the native crypto currency of Ripple. A possible reason for the strong rise is also the upcoming Spark Token Airdrop, which is also supported by the broker eToro.
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XRP price depends on several factors
In addition, in its last quarterly report Ripple made public that the company has launched a so-called „buy-back programme“ and is buying back XRP on the public market. This procedure is also known in the traditional market and usually causes prices to jump.
Nevertheless, caution is currently advised. After such a strong rise in a short period of time, a correction becomes more and more likely. One should also follow the Bitcoin price. Because in the end BTC can end the Altcoin party.
Possible correction could occur soon
This is also how some analysts see it and draw attention to a possible correction. The well-known trader Michaël van de Poppe believes that XRP is likely to experience a strong correction.
$XRP managed to run towards $0.47-0.50 and reached a higher timeframe resistance zone
What’s next? This video from trader @CryptoMichNL shows the levels to watch.
Full analysis can be found here:https://t.co/b4mbsKrV1d pic.twitter.com/t0mWhgSyNb
– Cointelegraph Markets (@CointelegraphMT) November 22, 2020
We can expect the XRP to reach the upper limit relatively soon. Unless it reverses this $0.50 level. So if we get that momentum and turn it around ($0.50), that would definitely indicate that we will see a continuation.
But given the importance of the previous resistance band between $0.27 and $0.30, we would definitely expect a correction to this region before we see a momentum wave.
Ripple still holds over 55% of all XRP and regularly sells them to larger investors, thereby investing in start-ups. The company will continue to throw its XRP holdings onto the market for decades to come, adding to the pressure to sell.