Why did XRP jump 50% in a week? Reasons for takeoff and prospects

The XRP token, issued by the fintech company Ripple, has jumped in price by almost 50% in just one week and is already worth more than $0.85. What is the reason for this rise and what awaits this cryptocurrency in the future?

XRP since the beginning of this year, as well as the entire crypto market as a whole, has not looked the best, having fallen 2.2 times in January. In general, XRP's position was greatly weakened back in 2020, when the US Securities and Exchange Commission filed two lawsuits against Ripple, convicting it of illegal transactions with financial assets. The trial has dragged on and is still far from over.

Why is XRP growing?

The rise in the XRP rate over the past week is largely due to the general corrective growth of the market. According to observations of market participants, activity in the XRP network in recent days has been recorded at record levels since November last year

Having fallen at the beginning of this year, many cryptocurrencies were heavily oversold, and a natural correction to such a sharp drop began in the market. In particular, Bitcoin increased in price by 18% in the first week of February, and the second most popular cryptocurrency, Ethereum, increased by 21%. And yet, XRP surpassed them in its growth rate. The reason for this is statement by Ripple CEO Brad Garlinghouse that the trial with the SEC will soon end and all problems with the financial regulator will be resolved.

Source: cnbc.com

Thus, the current rise in the XRP market rate is due not only to the general corrective recovery of the market, but also to encouraging news from the Ripple.

What to expect in the future?

If we take into account that many cryptocurrencies are now greatly undervalued, then XRP, along with other digital assets, has a chance of soon regaining previously lost positions. The next major resistance point for XRP will be the psychological $1 mark. Having overcome it, this cryptocurrency will open its way to the next important level – $1.4, which was last observed in September 2021.

Source: stormgain.com

However, it is possible that after a wave of growth, the cryptocurrency market will continue to decline again. In this case, XRP risks once again losing the level it reached at $0.8 and sliding down to $0.6.. This may happen if there is no more positive news from Ripple regarding the prospects for resolving the legal dispute with the SEC.

Author: Dmitry Noskov - expert of the StormGain crypto exchange (platform for trading, exchanging and storing cryptocurrency)

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