XRP (XRP) Price Today – XRP / USD
Price 24H (%) -0.76%
XRP Price Looks Ready to Drop Another 20 Percent: Ripple Shorts Get Ready
For those that have been following the price articles that have been put out in recent times, the recent downturn in price is something that was anticipated a few days ago:
$XRP Ripple Price Analysis
For this price analysis, we’re going to look at the USD side of things on the trade.
In short, a traded range is a resistance and support point that the price trades back and forth between until it either breaks above or below the traded range.
Thus, according to modern trading theory, we should be expecting the price of Ripple to make a quick stop at approximately 44 cents (not an exact, just an estimate).
However, the momentum for the price of $XRP makes it appear as though the price may decline even further than that.
Ripple’s New Strategy Can Trigger XRP Price Up?
Ripple Records Record Year, Shifts Strategy Toward XRP and xRapid Adoption
Ripple just recorded a record year in the adoption of its proprietary suite of blockchain software solutions.
RippleNet, the company’s network of banks and payment providers that use Ripple’s blockchain technology to process payments, has witnessed an explosive year in 2018.
Back in March 2018, Ripple CEO Brad Garlinghouse said the company was signing up one new bank per week. By the end of 2018, that number has doubled, with Ripple signing up an average of two production customers every seven days. Among the signups were PNC Bank, a top 10 US bank, and the National Commercial Bank of Saudi Arabia, one of the Middle East’s most powerful financial institutions.
With an increasing number of banks in the bag, Ripple is now turning its attention toward widespread adoption of xRapid, the cross-border payment product that utilizes XRP to increase the speed and liquidity of cross-border payments.
Ripple officially launched xRapid for commercial use, with three financial institutions on board.
“RippleNet is now providing on-demand liquidity to financial institutions for cross-border payments using the digital asset XRP. xRapid, the Ripple product powering these transactions, is commercially available and moving into production with multiple customers, including MercuryFX, Cuallix and Catalyst Corporate Federal Credit Union.”
As for the adoption of XRP itself, Ripple says it has more institutional clients interested in XRP than ever.
According to Garlinghouse, institutional investors are buying XRP from the company at a record pace.
“One of the things I will tease for a future announcement – we’ll do the Q3 XRP markets report, which we always share, where we’re seeing institutional participation in buying XRP. Q3 will definitely be a record of institutional participation in buying and interest in holding XRP.”
At the Crypto Finance Conference in Half Moon Bay, California, Ripple co-founder Chris Larsen expanded on the company’s vision for the future of XRP.
“We think the use case for the XRP ledger and XRP the digital asset is really around, initially, reducing the cost of liquidity for cross-border payments. Long-term, though, we think it’s a key winner in this race to be another digital asset for the world for all kinds of use cases. It’s a long-term play. Has to have value. Can’t just be a store of value for store of value’s sake. Has to actually have a use case. And that’s how we see this evolving.”
Ripple owns 60% of the total supply of XRP, with 91% of that investment locked in escrow.
Well, Swell happened next and, while it was supposed to be a low key conference, it turned out a big announcement. Namely, that xRapid is, at last on production stage, with three partners who are already using it to settle their international money transfers.
Those were great news. And what happened next? XRP’s price went down. Let’s dig a little deeper.
Cryptocurrencies, like any other commodities or resources, can grow in value because of two reasons: they can either be useful, or speculators could be interested in them. This is Economics 101. At this point, very few crypto-coins are helpful in the real world. That means that their value is dictated by speculative pressure, mainly.
Ripple is in a transient period. It is turning into a project (and a token) that is becoming useful in the real world because banks, remittance services, and financial institutions are slowly (but surely) adopting both the platform and the coin. But the process is only beginning so speculative pressure is still very strong and it’s holding the token’s value back.
XRP Going Down?
So if xRapid is finally in production, then why is the token’s price going down?
Because it’s started with three users only, which are not very big at that. But if things work well for them, other banks (bigger banks) will also adopt xRapid (Banco Santander already has another of Ripple’s platforms in production), and that will create a much bigger demand for XRP. Not because of trade in exchanges but because it’s a useful coin that solves problems for real people.
The one thing you need to know about XRP’s value is this: it’s not a sprint race; it’s a Marathon. But Ripple technology and the token have proven to be helpful for many businesses the world over so they are sure to gain more users.
And with more users, there will be a higher trade volume that will drive the coin’s price up because of usefulness, and not because of sheer speculation. Keep in mind that even Stellar Lumens and LiteCoin have seen Ripple’s project and followed suit, because they know that taking a cryptocurrency mainstream is the one thing that can make it valuable in the market, bypassing speculative measures.
This is a time to think long-term, and there are many good long-term bets in the cryptosphere. Tron, Stellar, Bitcoin (surprise!), Cardano and a few others, but among them, there is Ripple.
Don’t worry about the current market. As I stated before, it’s irrational. Be rational and outdo the market. Not this week. Just think long-term. Is the market terrible right now? No, it’s not awful. It’s cheap. It’s probably the right time to buy. But don’t take our word. Do your own research, reach your own conclusions and never put in the crypto market money that you can’t afford to lose.