The crypto market was quite erratic yesterday. It pumped suddenly, and in a few hours, bitcoin was trading at over $7500 on some exchanges. However, it has since calm down, and most cryptos are slowly headed back to their pre-pump valuations. One crypto that seems to be holding on to yesterday’s gains is XRP (XRP). It is the only one in the top 10 that has retained a significant portion of the gains it made yesterday. This is a clear indicator that XRP (XRP) is still high in demand, and market-wide pumps are only giving it the momentum to continue rising in value. There are a number of factors that support this price action by XRP.
The first one is the media attention it gets. Due to its huge use case in the banking industry, XRP draws in lots of attention in crypto media. As such, any time it pumps, crypto media especially on YouTube hypes it up, and this is a massive influence on investor decision making. It is especially a huge influence now that XRapid is live, and most people have already been anticipating a huge price move since it went live. In yesterday’s case, this media attention, seems to have created FOMO around XRP, causing it to hold on to most of its gains. As such, XRP is likely to continue pushing up in price driven by the increased demand, in anticipation of further gains.
Closely related to this FOMO buying is the fact that for the past week, the price of XRP has not been moving in tandem with what the market was expecting. XRapid going live was not just an ordinary event, or just any news, as has been the case with XRP all through the year. This is the one event that every XRP holder was waiting for since 2017. As such, the fact that XRP didn’t pump after this event caught lots of investors’ off-guard.
It has created lots of anticipation in the market and anytime the price shows signs of positive momentum, investors are willing to jump in, to avoid getting left behind in case XRP (XRP) suddenly shoots up. This fear of missing out is not entirely unfounded though. In late September, when news emerged that XRapid would be going live, the price pumped by over 60% within a few hours. Therefore, there is reason to believe that now that XRapid is live, XRP could moon quite fast at any time. This would be driven by demand from the institutions that are using XRapid at the moment.
Based on the above factors, chances are that XRP (XRP) could hold on to the gains from yesterday’s pump. There is also the possibility that similar pumps in the future could add to the momentum of XRP, and possibly trigger a bull run that takes this crypto to the top. The underlying fundamentals of XRP are quite strong, and all it needs at this point is a price catalyst, one that will push it to unprecedented price levels, going into the future.