Since the coin managed to escape the bear zone, the price of XRP has risen along with the rest of the cryptocurrency market, rising 1.3% to $0.5197 as of this writing. XRP has recovered all of its losses over the last week and is now up 3.85%. Its monthly loss has been decreased to 9.2%.
Impact of Bitcoin correlation
The market was not prepared for the enormous effect of Bitcoin’s price recovery, which propelled the leading digital currency to a three-year high of $50,358.39. Many cryptocurrencies had their price break upward trend as a result of the rally, with XRP being one of the main winners.
Members of XRP’s ecosystem have been extremely concerned about the price of the cryptocurrency during the past month. Many have urged the leadership of Ripple Labs to assist in offering a solution to end the pricing impasse in their attempt to get greater closure.
Although Ripple has implemented several well-defined tactics to regulate the flow of XRP and its underlying use case, the price has not proven to be very striking. The asset’s rise is mostly being driven by the strong correlation it demonstrated versus Bitcoin.
This has an additional underlying drawback in that a potential correction in the price of Bitcoin might lead to a general decline in XRP and other linked assets.
XRP growth strategies
As was already established, Ripple is crucial to the management of XRP as a utility coin. The company fronts the coin as an essential settlement asset for the RippleNet protocol and uses it in its cross-border payments solution, On-Demand Liquidity (ODL).
In addition, XRP Ledger (XRPL), a network of smart contracts managed by Ripple engineers, is introducing a number of innovations and bringing on new creatives to build apps that have the potential to generate significant demand for XRP usage and, eventually, accelerate price increase in the long run.
