XRP Price Rebirth and Bitcoin Influence, Here’s Correlation

The XRP price has joined the broader crypto market rally as the coin has successfully wriggled out of the bear zone, jumping 1.3% at the time of writing to $0.5197. Over the past week, XRP has erased its losses and is now up by 3.85%, while simultaneously trimming its monthly loss to 9.2%.

Impact of Bitcoin correlation

The resurgence in Bitcoin’s price, which pushed the premier digital currency to a three-year high of $50,358.39, had a tremendous impact that surpassed market expectations. The rally pushed the price of many altcoins off their losing streaks, with XRP being one of the major beneficiaries.

Over the past month, the price of XRP has served as a major concern to members of its ecosystem. In their bid for better closure, many have called on the executives of Ripple Labs to help proffer a solution to the price stalemate.

While there have been some defined strategies being employed by Ripple to control the circulation of XRP and its underlying use case, the price has failed to be obsessively impressive. The strong correlation it displayed against Bitcoin now serves as the dominant catalyst driving the growth of the asset.

This has an underlying disadvantage as well, as any impending correction in the price of Bitcoin might trigger a slump in XRP and other correlated assets across the board.

XRP growth strategies

As mentioned earlier, Ripple plays a huge role in the administration of XRP as a utility coin. The firm utilizes the coin in its cross-border payments solution On-Demand Liquidity (ODL), and it is fronting it as a crucial settlement asset for the RippleNet protocol. 

Beyond this, XRP Ledger (XRPL), a smart contract network controlled by Ripple developers, is also deploying a series of solutions and onboarding new innovators to create applications that can draw high demand for XRP use and ultimately boost price growth in the long term.

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2024-02-13 20:22