Despite big partnerships, XRP is the only top 10 crypto to drop year-to-date

Despite big partnerships, XRP is the only top 10 crypto to drop year-to-date

XRP, the native cryptocurrency of the XRP Ledger and RippleNet developed by Ripple, is the only top 10 crypto asset to record a drop against the U.S. dollar year-to-date.

In the same period, the price of Bitcoin has increased by more than two-fold from below $4,000 to $9,100 and other crypto assets such as Ethereum, Litecoin, and Binance Coin have increased by 50 percent to 200 percent.

Why XRP price is lagging behind amidst strong partnerships

As previously reported by CryptoSlate, Ripple has secured high profile partnerships throughout the year, including its deal with payment processors to utilize XRP in processing international remittance payments.

The MoneyGram deal, for instance, led to a substantial spike in the volume of XRP in Mexico, as the remittance service provider started to expand its usage of XRP.

According to Asheesh Birla, senior vice president of product at Ripple, MoneyGram CEO Alex Holmes said:

“Our partnership with Ripple will be a competitive differentiator in the months and years ahead.”

Yet, the price of XRP has dropped from $0.34 to $0.29, by nearly 15 percent in the past 11 months, despite the optimism surrounding its partnerships.

Currently, analysts generally believe the sluggish price trend of XRP to have been caused by the sales of the crypto asset by Ripple.

In its quarter 3 report, Ripple said that it sold $66.24 million worth of XRP, with the vast majority being sold to institutions. Ripple said:

“Ripple sold $66.24 million XRP in Q3 2019, a 73.7% decrease in sales in XRP QoQ, as measured in USD. Overall market capitalization of digital assets decreased in Q3, with the overall market cap losing 30.4%. XRP price declined 35.4% QoQ.”

However, the firm noted that it intends “to maintain a similar approach to Ripple’s XRP sales as compared with Q3,” hinting at additional sales of the asset approaching the year’s end.

Can it recover?

In the past month, technical analysts like Peter Brandt have said that XRP looks to have finally bottomed after what has been a relatively poor year for the crypto asset in terms of price. Brandt said:

“The diamond pattern has always been a top pattern among traditional markets. I suppose pattern might work for a bottom in crypto markets. If you want to know what a very clean diamond looks like, see XRP.”

Eric Thies also noted that there is a large bullish divergence on the weekly for the asset against the U.S. dollar, not dismissing the possibility of a trend reversal in the short term. Thies added:

“Then again there’s a decently large bull div on the 1 week for XRPUSD so who knows how long this actually stays true for.”

With a major Japanese financial institution in SBI Group and a widely utilized remittance service provider in MoneyGram both doubling down on their focus on XRP, the asset seemingly has factors for a potential rally.

However, its year-to-date performance still has been poor when compared to other top cryptocurrencies.


Updated: Dec 7 at 4:09 pm UTC

XRP, currently ranked #3 by market cap, is down 0.31% over the past 24 hours. XRP has a market cap of $12.68B with a 24 hour volume of $1.41B.

Chart by CryptoCompare

XRP is down 0.31% over the past 24 hours.

Posted In: , Partnerships, Price Watch
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Joseph Young

Joseph Young

Analyst @ CryptoSlate

Joseph Young is a finance and tech journalist. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.

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