In this context, the question arises: what happened to XRP that its price is not continuing to rise?
First of all, it should be clarified that no upward trend is in one direction only, especially in such a volatile environment as the cryptocurrency market.
Even if XRP had continued its rise, it was to be expected that a downward correction would be recorded. This is a price adjustment after a strong upward movement.
Likewise, it should be emphasized that these corrections help stabilize the market and are healthy for the growth of a financial asset. They allow new buyers to acquire a digital coin and investors to take profits. In this way, a sort of floor or firmer support is created for future upward movements.
As explained by CriptoNoticias, support is a level or price zone where a financial asset stabilizes or rebounds parabolically. The price usually does not drop below this zone because, for investors, selling it below this level would undervalue it.
Bullish outlook for XRP
The price of XRP is currently at 40% of the ATH it reached in January 2018. However, there are some factors that could drive its price to historical highs, such as the launch of RLUSD.
This is Ripple's stablecoin. Initially, the asset that has a 1:1 parity with the US dollar was set to be available in the market starting December 4, but its launch was ultimately postponed. The company's executives indicated that they continue to work with the New York Department of Financial Services (NYDFS) for final approval.
With RLUSD, Ripple will offer investors a safe-haven asset that is not exposed to market fluctuations. Also, another point to consider is that it will be issued on the Ethereum network and the XRP Ledger.
In this regard, it should be noted that if there is a higher volume of activity on the XRP Ledger, the demand for XRP for fee payments will increase. This increase in the use of the cryptocurrency could act as a price catalyst for XRP.
Another factor that could drive the price of the asset is that there are currently four companies that have filed applications to issue their exchange-traded funds (ETFs) based on XRP. The firms wanting to launch these financial products to the market are Canary Capital, Bitwise, WisdomTree, and 21Shares.
If the next administration of the U.S. Securities and Exchange Commission (SEC) pushes for clear and friendly regulation for the cryptocurrency sector, it is possible that these applications will be approved.
If these products are successful, the firms will need to buy more XRP, which would trigger a bullish impulse in the price.
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So... should we buy or keep waiting??????...
WHAT DO YOU THINK...!!!!