Ripple prices rallied lately, generating notable gains as the broader cryptocurrency market pushed higher.
The XRP token reached $0.8768 early this morning, according to CoinMarketCap.
At this price, the digital token was up more than 20% over the last 24 hours, and had climbed to its highest since early March, additional CoinMarketCap figures show.
XRP appreciated as several other digital currencies moved higher. At the time of report, every one of the top 10 cryptocurrencies by market value were up over the last 24 hours.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
When explaining what fueled the recent gains in the price of digital assets, analysts cited several factors.
Several media outlets reported that exchange Binance would allow its customers to use fiat currencies to purchase cryptocurrencies, linking these alleged developments with the gains in XRP.
However, Binance has made no plans to allow such transactions, according to Bloomberg.
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“It certainly wouldn’t be the first time XRP has moved on rumors,” stated Mati Greenspan, senior market analyst for social trading platform eToro.
“Everyone is anticipating XRP being listed on one of the top exchanges sometime this year,” stated Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform.
Charles Hayter, co-founder and CEO of digital currency data platform CryptoCompare, commented on these expectations.
It all comes down to the perception of investors, and how likely they think a particular outcome – for example an exchange adding XRP trading – really is.
While the Binance rumors did play a role in XRP gains, there were certainly other factors involved, analysts emphasized.
Several market observers pointed to tax season when explaining the recent movements in the digital currency markets.
“Tax season in the U.S. is now over,” noted Serge Maurice Lobreau, CEO of blockchain-powered FinTech company Flashgroup.
“Many investors cashed out their cryptocurrencies either to pay for their taxes or because they didn’t understand the market and decided to reallocate their portfolios,” he said.
Garcon offered a similar point of view. “I believe that the post tax day surge also had something to do with XRP’s recent movement.”
Traders have become more positive about the digital currency markets as of late, and more than one analyst spoke to these developments.
Cryptocurrency prices have been trending higher, noted Marius Rupsys, a digital currency investor.
“The entire market is up and the general sentiment is that we’re finally coming out of a bear market and entering a bull market,” said Garcon.
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As these digital assets rise in value, investors may perceive XRP as a good buying opportunity, said Coelho.
“XRP is priced significantly lower than any of the other top five cryptocurrencies (BTC, ETH, BCH and LTC),” he stated.
Since the XRP token has fallen so much from its all-time high, it bounces back more than other digital currencies, said Rupsys.