5 Reasons Why The Recent XRP Price Surge Isn't A Fluke – CryptoMode

Even though the crypto market sentiment seems to turn bearish again, the past week’s performance has been pretty decent for most major markets. Ripple’s XRP gained over 30%, yet many people wonder where this sudden interest comes from. Several behind-the-scenes developments trigger excitement, although their long-term impact on XRP remains unclear. 

XRP Market Sentiment Remains Bullish

It has been a poor end to 2021 and a slow start to 2021 for XRP and other crypto assets. That momentum resulted in a period of sideways trading and accumulation for Ripple’s asset, solidifying its price near the $0.53 level. However, things have begun to improve in the past week, pushing the price to well beyond $0.8. Such a strong upward surge will ultimately meet a correction, which is why today seems a bit less exciting compared to the past week.

For now, there is no immense pressure on the XRP price to speak of. Moreover, the volume seems fairly decent, with many people looking to add to their stack of Ripple‘s asset. The RSI has also come down from its overbought territory and, while declining sharply, isn’t nosediving either. Unless Bitcoin were to lose 10% or more in the coming hours, no strong price drop is expected. 

Ripple Buys Back Series C Shares

Although it is not abnormal for companies to buy back shares issued during a funding round, it is intriguing to see Ripple opt for this approach. The shares were issued in December 2019 and re-acquired by the company a few weeks ago at a $15 billion valuation. Moreover, CEO Brad Garlinghouse confirms Ripple has $1 billion in the bank despite numerous obstacles to overcome throughout 2021. 

Excited to announce @Ripple bought back our Series C (Dec 2019) shares at a $15B valuation! 1/4

— Brad Garlinghouse (@bgarlinghouse) January 26, 2022

Though, buying back the Series C shares has no immediate impact on XRP or its price. That said, it makes people bullish on Ripple as a company, which may trigger more excitement for its native asset. Additionally, the on-hand cash reserves can be interpreted in many ways, even though it remains in Ripple’s best interest to keep selling XRP to external partners and clients whenever possible. 

A Solid Q4 2021 XRP Sales and RippleNet Report

Ripple unveiled its quarterly XRP Markets report, confirming that Q4 2021 was good. More specifically, thanks to customer demand, RippleNet noted its most successful year in 2021. Transactions on the network more than doubled, and the payment volume surpassed $10 billion. A strong report, considering how Ripple and Moneygram parted ways earlier. 

Moreover, the XRP sales by Ripple related to ODL more than doubled compared to Q3 2021. Despite the total XRP volume taking a near 15% hit. Even so, everything seems to be going well for the company on this front, confirming the demand for its native asset is not slowing down. 

Modulr Partnership

Forging strategic partnerships remains a crucial aspect to Ripple and its business. For example, the collaboration with payments platform Modulr creates opportunities in the UK and European markets. Trust Payments is the first client to benefit from this partnership, with others to follow in the coming months. 

SEC Lawsuit Still Drags On

The Ripple-SEC lawsuit still isn’t over and may not come to an end for a while longer. However, it would appear the chances of Ripple coming out victorious have increased once again. Although the outcome has not been decided yet, every update makes the community more bullish on XRP. The bigger question is when this matter will finally be put to bed, as it has dragged on long enough. 

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