XRP is the native cryptocurrency of the Ripple network. It has long been controversial due to the U.S. Securities and Exchange Commission (SEC) lawsuit. The crypto community expected its price to rise after the lawsuit ended.
However, it remained at the same $0.6 level three years ago. Even some crypto pundits called XRP a scam. This raises the question of whether XRP is a good investment.
What Historical Performance and Current Market Status Suggest?
XRP, launched in 2012, reached an all-time high of $3.84 in January 2018 but has since struggled to regain those levels. Historically, XRP has been highly reactive to broader market trends and legal developments. For instance, the 2021 bull market propelled its price to nearly $2, yet it failed to maintain those levels due to regulatory uncertainties, primarily stemming from its legal battle with the SEC.
As of August 2024, the XRP USD pair traders near $0.56, far below its peak. XRP’s current market capitalization is around $32 billion.
XRP/USD Daily Price Chart. Source: TradingView
The price is slightly above the 20-day and 50-day EMAs but below the 100-day and 200-day EMAs. This placement suggests mixed signals; while the shorter-term EMAs below the price indicate some immediate bullish sentiment, the longer-term EMAs above the price hint at overarching bearish pressure.
The RSI remained neutral, with a score of around 52.43.
If the price breaks above the 100-day and 200-day EMAs and sustains this breakout, it could signal a bullish reversal, potentially leading the price to test the $0.60 resistance.
Conversely, if the price fails to sustain above the shorter-term EMAs and drops below the $0.55 support level, it could lead to further declines towards $0.50 or lower.
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Ripple’s Effort Suggest XRP To Be A Good Investment
Several key factors affect whether XRP is considered a good investment. The overall sentiment in the cryptocurrency market greatly influences XRP’s price movements.
Additionally, XRP is designed to make quick and low-cost cross-border payments. Ripple has partnered with several financial institutions and banks, promoting XRP as a bridge currency to facilitate transactions.
Ripple’s recent partnership with the National Bank of Georgia.
However, XRP faces stiff competition from other cryptocurrencies like Bitcoin and Ethereum, which have also made inroads in the payment solutions sector.
Furthermore, Ripple’s efforts to improve the XRP Ledger (XRPL) and its ecosystem, such as developing smart contract capabilities, could add value to XRP. Yet, for now, the market sentiment towards the token remains cautious.
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