XRP Records 13% Increase against USD and 35% against BTC

2022-10-11, 02:34

[TL; DR]

🔹 The market anticipation that Ripple may win a lawsuit against SEC has created a bullish moment for XRP.

🔹 On 29 September 2022, XRP recorded a 13% price increase within 24 hours.

🔹 On 23 September XRP gained 35% against bitcoin, breaking a 13 month record.

🔹 People can invest in XRP and its derivatives at exchanges such as Gate.io.

Introduction

Many, if not all, major cryptocurrencies have faced stiff price resistance for the greater part of the year in a period dubbed crypto winter, which started around May 2022. However, recently, Ripple (XRP) , the sixth largest cryptocurrency based on market capitalization, rallied more than the market expected.

With a current market price of about $0.4713 and a capitalization of $23,502,722,084, XRP is trending. At the time of writing, XRP gained 5.59% within 24 hours.

Source: CoinMarketCap

However, the XRP bullish momentum started in August, although there were occasions of price falls. For example, on 29 September 2022 XRP gained 13% within 24 hours. On that day, the XRP price first dropped to $0.43 before spiking to the extent of breaking the $0.4800 resistance level.

By the close of the day, XRP was trading near the $0.5100 level. In the end, the market anticipated a bull run in the event that the price surpassed the $0, 7990 resistance level. Nevertheless, a few days after that price surge, XRP is trading in the range of $0.4285 and $0.5030.

Source: CoinMarketCap

XRP’s 13 Month High against bitcoin

During September XRP made another record that supports its current upward price momentum.On 23 September it recorded a 35% daily surge against bitcoin, the highest of such a move within 13 months. Within the same period, XRP registered a 42% rally against the US dollar

The current XRP bullish momentum started on 12 September following an agreement between Ripple and the U.S. Securities and Exchange Commission (SEC) for a summary court judgement on the legal case that has been raging on for more than a year now. The two parties agreed that the court should use the available evidence to pass its judgement on the legal battle where the SEC accuses Ripple of committing securities fraud.

In fact, the current XRP rally is a result of the “buy –the- rumour” in anticipation of Ripple’s lawsuit win against SEC. On 23 September, the Relative Strength Index (RSI) of XRP/BTC was about 85 meaning that it was 15 points above the overbought threshold (70). That was a possible sign of XRP market consolidation.

Expecting a lawsuit win against SEC ,Brad Garlinghouse, the Ripple CEO said, "People realize that the SEC is really overreaching and they are not following a faithful allegiance to the law in pursuit for an outcome [...] The SEC has kind of lost its way."

It is such sentiment and expectation that has filled the entire crypto market, considering that XRP is one of the largest cryptocurrency at the moment. To this effect, the overall XRP rally since September 12 has been around 60%.

XRP’s history

XRP is a cryptocurrency that exists on RippleNet, a decentralized network that facilitates transactions among financial institutions. In other words, it is a cryptocurrency for applications of financial institutions, mainly those that process global financial transactions. Since Ripple uses a Federated Consensus protocol, its transactions are faster than those of proof-of-work based blockchains.

International financial institutions use the Ripple network as a bridge for fast and low cost transactions across borders.

Unfortunately, Ripple is involved in a legal battle with the U.S. Securities and Exchange Commission. SEC claims that Ripple acted against the law when it raised funds using XRP in 2013. According to it, the XRP token was not registered as a security at that time, making the process illegal.

However, Ripple argues that its cryptocurrency, XRP, is a non-security since it is a fully decentralized digital asset. This impasse implies that only a Federal court of law should give a verdict to settle the case.

Why Investing in Ripple (XRP)

The recent rally of XRP does not only arise from the possibility of the lawsuit win but its fundamentals as well. First, Ripple (XRP) is different from major cryptocurrencies such as ETH and BTC which strive for full decentralization. Instead, Ripple fully owns XRP and it intends to make XRP a bank token that supports a global monetary transfer system.

Therefore, XRP is meant to solve a real world problem. It helps to facilitate the smooth transfer of capital around the globe in a seamless way. In addition, it aims to provide a platform for millions of individuals and businesses around the world to access the global economy.

As well, if some of the big brands in the financial sector adopt XRP its value can rise astronomically within a short period. What is essential, at this time, is for a few well-known brands to associate with XRP. For instance, Moneygram has already carried out a pilot program of transfering money using XRP.

Due to its high transaction speed and low fees, many institutions have partnered with Ripple. The only factor that is stalling the progress of the partnerships is the on-going lawsuit.

XRP has good tokenomics as well. For instance, it has a finite supply of 100 billion coins, released using a predetermined schedule to avoid unnecessary inflationary pressure. At any rate, its market capitalization,$23,502,722,084, is relatively high showing how popular the cryptocurrency is among investors. Generally, Ripple has been in the top 10 cryptocurrencies for a very long period, a further indication of its dominance in the market.

Ways of investing in XRP

There are several ways for investing in XRP. Beginners can simply buy and hold this cryptocurrency waiting for its appreciation. Gate.io is a top crypto exchange where you can buy and hold XRP. The good thing is that investors can purchase cryptocurrencies at Gate.io using credit cards, bank transfers and peer-to-peer (P2)) transactions.

Conclusion

Recently, XRP has been performing well. For instance, at one time, it attained a 13% price rise within 24 hours. It also recorded a 35% rally against bitcoin, an indication of its potential to outshine other major cryptocurrencies should the SEC drop its charge against Ripple. People can buy and hold XRP, trade it or invest in its derivatives such as futures.

Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.