Understand how XRP has risen so much in such a short time
The price of XRP exploded more than 40% yesterday to record the biggest weekly gains in more than 2 years. But why did this happen? We will see here the fundamentalist part combined with the technical part.
First, the Ripple team is trying to find new use cases for XRP and started collaborating with Flare Networks to execute Ethereum’s smart contracts in the XRP ledger. As a result, the interface allowed new possibilities to find new applications for XRP, leading Wietse Wind to create his own new function for smart contracts with “Hooks”.
Hooks is one of the long-awaited integrations for XRP, which offered proprietary smart contract functionality for the first time. Chief developer Wietse Wind wrote in a tweet that the code is accessible to anyone, allowing all node operators to use Hooks.
In addition to sharing the code, Wind also published a series of commands for Docker, an application that allows software to run from code packages. The instructions were shared on Github, according to which developers must follow two essential steps.
The first stage says that developers need to operate one node to see the logs and another to enter the commands for executing smart contracts. Wind said further updates and adjustments will come, and added that this will be a group of key functions in the smart contract.
In addition, Flare Finance’s DeFi protocol should present 6 different DeFi products to the market, all based on XRP, which acts as a bridge currency. As a result, a multi-token ecosystem will be established, allowing users to use XRP in several different ways.
Technical analysis: XRP price explodes to a 17-month peak
The XRP / USD price rose more than 40% yesterday, in one of the best daily performances in its history. The price action extended the bullish run even higher today, to print $ 0.4967, the highest traded price since June 2019.
XRP / USD monthly chart (TradingView)
An almost vertical bullish momentum means that Ripple is now trading 90% higher in November. Yesterday’s break means that the XRP price is now trading above the downward trend line at $ 0.36. A weekly / monthly close above this line will help XRP buyers try to break above the next key resistance line at $ 0.50 and target $ 0.56.