Why Is XRP Price UP?

Ripple is gearing up for some exciting changes to the XRP Ledger (XRPL), which could have a big impact on the price of XRP. As these upgrades roll out, many are wondering if they will drive up demand and lead to a rise in XRP's value. In this article, we'll explore what's happening with the XRP Ledger and how it might influence the XRP price.

How has the XRP Price Moved Recently?

As of today, XRP is priced at $0.571284, with a 24-hour trading volume of $1.21 billion, a market cap of $32.14 billion, and a market dominance of 1.55%. Over the past 24 hours, XRP's price has risen by 2.91%.

XRP hit its all-time high of $3.92 on September 3, 2024, while its all-time low was $0.002802, recorded on July 7, 2014. Since reaching its peak, the lowest price XRP has seen was $0.113268 (cycle low), and the highest price since then was $1.97793 (cycle high). Currently, the sentiment around XRP price predictions is neutral, and the Fear & Greed Index is at 26, indicating fear in the market.

XRP has a circulating supply of 56.25 billion out of a maximum supply of 100 billion XRP. The yearly supply inflation rate is 6.18%, meaning 3.27 billion XRP were created over the last year.

Why Is XRP Price UP?

XRP's recent price surge can be attributed to Ripple's announcement of major upgrades to the XRP Ledger (XRPL), which have generated significant excitement in the crypto community. 

Ripple CEO Brad Garlinghouse revealed plans to introduce a new programmability feature to the XRPL, which will enable smart contracts on the blockchain. 

This upgrade is expected to bring transformative capabilities, including the integration of NFTs, Automated Market Makers (AMMs), and decentralized exchanges (DEXs). These new features could greatly expand the utility of XRP, driving increased demand as more developers and users engage with the network.

Moreover, Ripple's partnership with Futureverse, an AI and Metaverse technology company, to securely store assets on the network, further solidifies the potential of these upgrades. 

Futureverse has already adopted the XRPL NFT standard on the Root Network—a side chain that Ripple is developing to support these new programmability features, expected to be ready by 2025. The fact that XRP will be used as gas on this network underscores its growing importance within the ecosystem.

The anticipation surrounding these developments is likely contributing to the upward momentum of XRP's price. As the upgrades roll out and more projects leverage the XRPL's enhanced capabilities, demand for XRP could continue to rise, potentially leading to further price appreciation in the future.

XRP Price Prediction: What's next for XRP Price?

Looking ahead, XRP's price trajectory will likely be influenced by a combination of its recent developments and broader market dynamics. Over the past year, XRP has seen a 13% price increase, which, while positive, indicates it has underperformed compared to 66% of the top 100 crypto assets. 

Additionally, XRP has lagged behind major players like Bitcoin and Ethereum, despite showing strength by trading above the 200-day simple moving average—a bullish indicator suggesting continued upward momentum in the near term.

XRP's performance over the last month also highlights its potential for further gains. With 16 green days in the past 30 days (53%), XRP has shown consistent positive movement, supported by high liquidity given its substantial market cap. 

This stability could attract more investors, especially as Ripple continues to roll out its upgrades to the XRPL, potentially driving increased demand for XRP.

However, it's important to consider that XRP is still down 85% from its all-time high, reflecting significant room for recovery but also the challenges it faces in reclaiming previous levels. The yearly inflation rate of 6.18%, with 3.27 billion XRP created in the last year, could also weigh on its price if demand doesn't keep pace with supply.

While XRP has strong indicators of potential growth—trading above key moving averages, consistent positive price action, and major upcoming upgrades—the market's response to these developments will be crucial. 

If Ripple's innovations successfully drive increased adoption and demand, XRP could see substantial price appreciation. However, it will need to overcome its recent underperformance relative to other top crypto assets to fully capitalize on its potential.