- Ripple partners with New Zealand for CBDC project, boosting XRP adoption.
- Daily Active Addresses (DAA) soar, indicating increased XRP demand.
- Positive Relative Strength Index (RSI) trends hint at a potential bullish rally.
In a dynamic twist of events, Ripple (XRP) has once again taken center stage with reports indicating a captivating partnership between the cryptocurrency giant and New Zealand. The focus of this collaboration? The exploration of a potential alliance for a Central Bank Digital Currency (CBDC) project. As Ripple’s worldwide adoption continues to gain traction, this recent development is invigorating renewed excitement. Alongside an increase in daily active addresses and positive trends in the Relative Strength Index (RSI), enthusiasts of XRP have grounds to anticipate a bullish trajectory in the near future.
Fresh from its significant legal victory against the U.S. Securities and Exchange Commission (SEC), Ripple (XRP) is swiftly broadening its range of activities. Currently, it is engaged in active discussions with the New Zealand government about the possibility of collaborating on a CBDC project. This strategic move propels New Zealand into the ranks of nations like Colombia and Palau, which are showing interest in utilizing Ripple’s CBDC onboarding platform for their digital currency initiatives.
The aftermath of Ripple’s triumph over the SEC has breathed new life into XRP’s reputation and credibility. The pivotal question that emerges is whether this surge in global adoption holds enough weight to trigger a substantial rise in XRP’s value.
Elevated Adoption and Global Involvement
In the wake of Ripple’s success against the SEC, the worldwide acceptance of XRP is becoming increasingly evident. Recent developments indicate that Ripple is taking proactive steps to engage with the New Zealand government, initiating conversations about a potential partnership for a Central Bank Digital Currency (CBDC) project. This potential alliance might lead to New Zealand joining the group of countries adopting Ripple’s CBDC onboarding platform, joining the likes of Colombia and Palau.
An analysis of on-chain data paints a positive picture for the trajectory of XRP’s adoption. Most notably, the count of Daily Active Addresses (DAA) has shown consistent growth throughout August. According to Santiment’s graphical representation, XRP has attracted over 100,000 active users on at least 12 out of the last 16 trading days since July 31. This robust increase is a notable departure from the sporadic instances observed before the end of July. These spikes in DAA signify a growing demand and heightened transactional activity within the XRP network.
A Glimpse of Positivity for the Bulls
The Relative Strength Index (RSI) acts as a gauge for assessing the momentum and strength of an asset’s prevailing price trend. After a relatively subdued start to August, the bulls of XRP seem to be gradually regaining their influence. The RSI, which had declined from 55.6 to 41.72 in the initial week of August, has shown a modest rise from 41.72 to 43.5 between August 7 and August 15.
This incremental improvement suggests the emergence of a budding accumulation trend, hinting at a potential upsurge in bullish momentum. Notably, the current RSI levels remain comfortably distant from the overbought threshold, leaving ample room for a substantial price increase if the current positive momentum is sustained.