Ripple (XRP) is back! It has gained more than 5% in the last few hours, and the charts paint a picture of a crypto gaining upward momentum. So what’s driving up the value of Ripple at the moment?
Well, frankly, the biggest reason is the regained upward momentum in the entire crypto market. After several weeks in the red, we seem to have hit a bottom. During the bear run, Ripple had hit some serious lows falling below $0.60, and it got investors all panicky. But if the trend in the last 2 days is anything to go by, then the worst is most probably behind us. With regained investor confidence in the market, comes the rush to accumulate on good coins, and Ripple is one of them. Ripple is set to revolutionize finance, and investors want to get lots of it, when it’s still cheap. This is most likely driving demand at the moment.
The current momentum could also be an indication that investors are finally beginning to appreciate the intrinsic value of Ripple. Some experts have argued that the reason why the crypto market has dropped so hard is because the valuations are way ahead of the actual product. That’s why you have billion dollar crypto projects that are pretty much fancy whitepapers, with no product. That is not the case with Ripple. In fact, Ripple (XRP) happens to be one of those projects that have very low valuations when compared to what it has going on. Take for instance, the number of partnerships that Ripple has in the banking sector. At the moment, there are more than 100 partnerships, and many more are in the pipeline. All that combined with a valuation of under a dollar is most likely getting investors tickled, now that the market-wide bear-run seems to be losing steam.
Another factor that could be driving Ripple is the impending regulation of the crypto market. There is growing consensus amongst investors that regulations are coming. Naturally, people are looking to take cover in cryptos that will benefit the most from regulations. Ripple just happens to be one of the best on this front. It has the support of the banking sector, and has even come out openly in support of regulations. This could push up Ripple significantly once regulations come into place, especially those suggested by the G20. The G20 recommended that a global regulatory framework should be ready by July this year.
All these factors are playing a role in pushing up this crypto. Once the bullish momentum strengthens and the overall market bull-run is confirmed, Ripple (XRP) will be the biggest beneficiary. It has everything it takes for a crypto to shoot up. The chances of this crypto beating its 2017 highs is quite high, and at current prices it’s quite a bargain. In fact, a quick look at Ripple’s chart shows that is has been in a long accumulation period. That’s an indication that big investors could be taking up positions in anticipation of a strong upside move.