There is now an air of unpredictability surrounding XRP. Bitcoin is currently consolidating above $15,000, and other altcoins such as Ethereum and LINK have been steadily rising higher and higher in charts. It wasn’t exactly the same for the fourth-largest asset, which was still trailing behind its 2019 highs, let alone registering a new ATH since 2017.
XRP vs Bitcoin: A weekly chart edition
While Bitcoin’s value has exhibited periods of significant growth over the past couple of years, XRP has hardly witnessed a massive rise. Its high of $0.45 in June 2019 is still, its recent all-time high. While it does not say much about the token other than extreme sideways consolidation, its market reacted fervently due to an extrinsic factor.
According to Ripple’s Q3 insight report, Ripple purchased over $46 million worth of XRP in Q3 2020. In comparison, Ripple had invested zero dollars in the previous quarter. The report suggested that the massive buy-in was conducted to create a ‘healthy market’, indirectly inferring that the organization wanted to create interest for the token, and improve its price. However, here is an interesting hook in the development.
While the Q3 Insights report was released on 5th November, there wasn’t any coverage of Ripple buying over $46 million in XRP in Q3. It was covered today by another medium and just an hour later, the asset exhibited a rapid spike of 4.22%. A coincidence can be painted with respect to the surge but it has happened in the past as well.
It begs the question of whether the token can sustain growth on the basis of organic adoption, just like Bitcoin and Ethereum, or does it require the external influence of Ripple to keep it afloat in the top-10 digital asset rankings.
XRP volumes exhibited a 105% increase in Q3
This is where the speculation needle takes a vital turn. While the 4th largest crypto continues to attain long-term sideways oscillation, its daily volumes continued to suggest user involvement.
The above chart indicates the processing time of a transaction on XRP with respect to Bitcoin, Ethereum was XRP continues to outperform the top two cryptos. XRP’s functionality as bridge currency continues to demonstrate higher utility and convenience and in spite of limited price growth, it allows traders to capture time-limited arbitrage opportunities by capitalizing on XRP’s speed and low transaction costs.
Such organic activity should have an impact on its valuation however, market sentiment continues to be the primary trigger. Only time will tell whether the asset will improve on its credibility or get washed-out by other rising assets.