XRP prices rose sharply today, climbing more than 20% in less than 12 hours as traders responded to speculation surrounding the Ripple network.
The price of this digital currency, which was created by the founders of Ripple, spiked roughly 22% from $0.2723 to $0.3327 on CoinMarketCap.
When explaining the digital currency’s recent price rally, analysts pointed to rumors surrounding the Ripple network.
xRapid Release Date
A perfect example is the speculation surrounding xRapid, a digital currency product that could be available soon.
This product, which reduces liquidity costs and makes it easier for banks to make transactions, should be online in the coming months, Sagar Sarbhai, head of regulatory relations for Asia Pacific and the Middle East at Ripple, told CNBC.
“I am very confident that in the next one month or so you will see some good news coming in where we launch the product live in production,” he stated during a recent interview with CNBC technology correspondent Arjun Kharpal.
Traders Hungry For Bullish News
The digital currency markets, which have been trending lower lately, have been desperate for positive news, said Tim Enneking, managing director of Crypto Asset Management.
As a result, traders’ “reaction to something like xRapid is exaggerated,” he added.
Eric Ervin, CEO of Blockforce Capital, also spoke to the state of the digital currency markets:
“We do not believe that anything other than rumors and anticipation are driving XRP prices higher today.”
“We expect the market to correct in the short-term, potentially with room for growth if xRapid launches successfully next month.”