XRP Price Spikes After Ripple Acquires Icelandic Tech Start-Up

Share Article

On September 30, 2019, Ripple announced that it has completed the purchase of Algrim — an engineering firm based in Iceland that has developed a crypto-trading platform.

Sponsored



Sponsored

Ripple is the company behind the world’s third-largest cryptocurrency ranked by market capitalization, XRP.

Algrim is a six-person engineering company that was founded in 2010. Two years ago, it was the victim of a heist — in which hundreds of thousands of pounds worth of cryptocurrency mining equipment was stolen. Afterward, the company shifted to developing a trading platform, which will now be used by Ripple.

Sponsored



Sponsored

The price of the sale has yet to be disclosed.

With this deal, Ripple wants to consolidate its presence in northern Europe while providing a midsection between its North American and London bases.

Algrim Acquisition’s Effect on XRP Price

On 11:00 (GMT+2) during the same day, the XRP price spiked by 6.50 percent within one hour — as of the time of this writing. It is possible that this spike can be attributed to the positive news of company expansion.

While the increase looks very significant looking at this time-frame, the XRP price has been embroiled in a downtrend for the past 100 days. During this time, it has lost roughly 50 percent of its value.

However, the extremely significant resistance above the current price (10-, 20-, 100-, 200- day moving averages) combined with the bearish trend of Bitcoin (BTC) and the cryptocurrency market, in general, makes us believe that this is just a minor upward move inside a longer-term downtrend.

On a positive note, the price of XRP has settled above the 10-week moving average for two weeks in a row — something that has not happened, as noted by Bob Loukas, since December 2018.

Do you believe the recent XRP price spike occurred as a result of Algrim’s purchase? Is XRP currently bullish, or do you think it is still bearish? Drop your thoughts in the comments below!

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Related topics

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go