Ripple: Drivers to the latest XRP bull run and why it is far from over
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Ripple price has been on an uptrend since Monday, drawing steam from the Bitcoin price action.
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XRP market cap has soared 25%, marking a new yearly high of $25 billion to bolster the uptrend.
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The token boasts a week-long ascension totaling 28% as the uptrend continues.
Ripple price has been on an uptrend since Monday, soaring alongside Bitcoin’s price action and in tandem with the general bullish market trajectory. As a result, the XRP market capitalization has also skyrocketed 25%, rising from $20 billion to $25 billion, a new yearly high that solidifies its position among the crypto top six.
Drivers behind Ripple’s bullish trend
1. Widespread adoption of the XRPL decentralized blockchain technology
As reported earlier, several forces are driving the latest bull run for Ripple price. For starters, the XRP Ledger (XRPL) has been instrumental in XRP’s prevailing uptrend. XRPL is a decentralized blockchain technology powered by the fintech company Ripple.
Based on data from market researcher Messari, the XRPL seeks to provide a digital payment infrastructure for individuals and financial entities like central banks alike.
5/ ~Feature Set
— Messari (@MessariCrypto) March 21, 2023
XRPL's feature set includes its Issued Currencies (IOUs), creating functionality for multiple assets.
Authorized Trust Lines, enabling issuers to choose which wallets can interact with their tokens.
And a central limit order book, supporting low-liquidity IOUs.
Reportedly, XRPL adoption has increased significantly since February, a factor that plays a role in the current price uptick for XRP.
With this widespread adoption, XRP demand continues to soar as more institutions and individuals use XRPL to facilitate cross-currency trades, among other applications. Accordingly, the XRPL-inspired price surge for XRP could be instrumental in driving Ripple price above the $0.474 roadblock to potentially tag the $0.500 resistance level.
XRP/USDT 1-day chart
This is feasible as more buyers approach the scene and compete for XRP’s limited supply, causing its price to increase.
Additionally, as users continue to discover the potential of XRPL in revolutionizing the global financial system, investor interest in XRP could spike, fueling more growth. The decentralized blockchain technology’s Proof-of-Association (PoA) consensus algorithm in the wider financial sector is a pillar. The algorithm validates transactions while ensuring the network’s security. This makes it a key part of the XRPL infrastructure.
2. Expected win in the Ripple vs SEC lawsuit
Another factor in the latest bull run for Ripple price is that investors have pegged their hopes on Ripple coming out victorious in the ongoing lawsuit against the United States Securities and Exchange Commission (SEC).
District Judge, Analisa Torres, ruled on March 6 on motions filed by both parties. In her ruling, the judge disregarded certain comments by expert witnesses from the upcoming summary judgment. While she partly approved and denied the motions, Judge Torres underscored no clear winner and loser in the court case.
Nevertheless, the termination of “Expert No. 1,” Patrick Doody, was a good sign. Doody was invited by the SEC as the primary witness to testify about the perceptions of a reasonable XRP purchase. The XRP community believes Ripple could win the court battle with Doody’s termination.
@SECGov VS. @Ripple . Judge Torres excludes witness #1 witness Patrick Doody (expert hired to analyze our expectations as #XRPHolders ) . How will the SEC prove that we expected a profit if Doody is excluded? Don't sleep on this ruling, this is a big deal. #XRP
— RippleEffect (@CommonsenseXRP) March 7, 2023
As reported in January, Ripple CEO, Brad Garlinghouse, said he expects the lawsuit will end “in the coming single-digit months.”
Notably, the Ripple community also rides on the March 12 assurance from Garlinghouse that the company is in a strong financial position. This came after the collapse of Silicon Valley Bank (SVB), to which Ripple had exposure.
Setting the record straight on SVB Qs:
— Brad Garlinghouse (@bgarlinghouse) March 12, 2023
Ripple had some exposure to SVB – it was a banking partner, and held some of our cash balance. Fortunately, we expect NO disruption to our day-to-day business, and already held a majority of our USD w/ a broader network of bank partners.
Many Twitter users responded to Garlinghouse’s thread positively, with one particular comment standing out:
I never doubted you or Ripple to have taken proper risk management.
Hours after the post, the Federal Reserve (Fed) said it had established a funding program of $25 billion to assist banks with liquidity during times of financial stress, cauterizing the situation for Ripple and many others. In a successful attempt to restore calm, the Fed also noted that all depositors of SVB would have access to all of their money beginning March 13.
3) Ripple becomes the primary partner of a key UK non-profit
Ripple managing director for the UK and Europe zone, Sandy Young, has announced that Ripple crypto company has partnered with UK's major charity non-profit organization, the Great Ormond Street Hospital Children’s Charity (GOSH). This Non-Governmental Organization focuses on helping children sick with cancer.
Excited to announce @Ripple's partnership with @GOSHCharity - now Ripple’s primary UK nonprofit partner. We believe in the power of #blockchain to create positive change. Great example how we can use our resources to support children under cancer care and their families. https://t.co/eV0sfyzVWC
— Sendi Young (@sendiyoung) March 21, 2023
The Ripple community is excited about the blockchain giant using its resources to support sick children and their families. Notably, the first order of business is raising millions of pounds sterling to help UK children fight cancer in GOSH. Ripple is expected to provide their best support here.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
