Ripple (XRP) is one of the best-known and largest cryptocurrencies by market capitalization. Ripple Labs company aims at efficient alternatives for international money transfer. Banks and companies in particular benefit from Ripple products, which enable cheap transactions in different currencies. Now, for the first time in several years, the Ripple rate has reached a $1 mark.
Recently, the project was increasingly criticized due to allegations of the Securities and Exchange Commission (SEC). The basis of the charge was an unauthorized issue of security. As a result, numerous exchanges temporarily suspended trading in XRP cryptocurrency.
XRP has now recovered and recorded a price increase of over 75% in the last week. This increases the chance that Ripple Labs can win the lawsuit and that XRP counts as a virtual currency and not as a company investment.
New Ripple All-Time High Soon?
So far, the Ripple price has only been able to recover slowly and, in contrast to other cryptocurrencies, recorded only slight growth. The currency’s all-time high was around $3.40. This corresponds to a difference of 70% to the current exchange rate of around $1.
However, many investors see great potential for the future. Ripple Labs is one of the largest companies in the crypto sector which can count on numerous successful partnerships. Ripple services are also widely used in the real world and have no direct competitors.
XRP is currently trading at around $1.00 — the highest value in around three years. The strong growth of the key currency Bitcoin also plays an important role here. In addition, there are increasing signs that Ripple Labs can dismiss the SEC’s lawsuit. This would mean that exchanges and funds could resume XRP trading.
Technical Analysis of XRP
Currently, XRP’s market cap is at $45.5 billion. This puts the currency in fourth place in terms of market capitalization. Only Bitcoin, Ethereum, and Binance Coin are rated higher.
The maximum number of coins is 100 billion, 45.5 of which are already in circulation. This results in a rate of exactly $1.00 per XRP. The trading volume of the last 24 hours is $36.28 billion. An exchange with the highest volume is the Binance Altcoin Exchange with a share of around four billion US dollars.
Since January 2019, the Ripple price has been in a sideways movement and has only shown low volatility. A trend reversal could only take place in autumn 2020 and an upward trend emerged due to the bull market.
The price is currently pointing to a short-term correction. The Relative Strength Index (RSI) has been above the critical level of 70 for two days and could indicate a price decline. In the long term, however, the trend could persist, which could also lead to a new all-time high. A prerequisite for this is a sustained bull market and a stable Bitcoin price.
Conclusion: Ripple Price Could Continue to Rise
Even if many investors avoid Ripple due to a lack of decentralization, the company is considered one of the most important in the field of cryptocurrencies. While Bitcoin and other cryptocurrencies are unsuitable as a means of payment, XRP offers secure and cheap payment transactions. In addition to Coinbase, Ripple Labs could be one of the first companies to offer company shares for trading on an exchange.
The Ripple rate is currently largely dependent on two factors. If Bitcoin continues to rise, this will also affect other cryptocurrencies and XRP will benefit from this as well. In addition, the decision of the SEC plays an important role. If XRP is classified as a security, this could have a negative effect on the price.
What is your XRP price prediction? Feel free to share your forecasts in the comments!
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