The price of XRP hit its highest level in three years earlier this week when it topped $ 0.75 on Monday, April 5th. The rise continued Today, the price of XRP is close to $ 1.00.
The last time XRP hit levels above $ 0.75 was in May 2021 when the price of XRP soared all the way to $ 0.90. After the price hit $ 0.90, the price of XRP started a long bear cycle that lasted for several years. At the lowest point, the price of XRP hit a low of around $ 0.14 – more than 26 times its all-time high of $ 3.80.
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Now, however, XRP seems to be on the right track to get further up. The asset has been rising steadily since Monday. However, XRP was hit with a correction to $ 0.93 this morning.
What was the reason for the XRP rally? And is it already over?
Ripple’s Tranglo acquisition “provides a tremendous amount of additional infrastructure for the growth of the XRP blockchain.”
The latest news that appears to have a direct impact on the price of XRP was the announcement that Ripple, the parent company of XRP, has acquired a 40 percent stake in Tranglo. Tranglo is an Asian payment company specializing in cross-border transactions. After the announcement, the price of XRP rose 40%.
Benjamin Leff, Sheesha Finance’s chief operating officer, told Finance Magnates that this acquisition marks a major step forward in Ripple’s goal of establishing its system as the primary settlement network for the global banking system.
At the time of the acquisition, Asheesh Birla, General Manager of RippleNet said, “Tranglo’s robust payment infrastructure, combined with its unparalleled customer service and quality, makes it an ideal partner to support our expansion of on-demand liquidity from the Southeast Asia region . ”
According to Benjamin Leff, the acquisition offers “an enormous amount of additional infrastructure for the growth of the XRP blockchain”.
The acquisition was enough to generate a massive price hike for XRP, despite Ripple’s currently in a legal battle with the U.S. Securities and Exchange Commission. The lawsuit, filed in December 2020, says Ripple sold XRP tokens as unregistered securities. After the lawsuit was filed, a number of cryptocurrency exchanges delisted XRP for trading.
While this may have halted some of XRP’s gains in the short term, some analysts believe the lawsuit (and delistings) will not have a serious impact on XRP’s future: “Although many Western exchanges have suspended or banned trading during the SEC- Investigation, traders in countries around the world are gathering behind XRP and buying more of it than ever before, ”Leff told Finance Magnates. Indeed, the price seems to reflect this.
“XRP investors are simply fed up with the SEC lawsuit.”
However, when the lawsuit hit in December, the price of XRP was very high. On Friday, December 18, 2020 – two days before the lawsuit was published – the price of XRP was around $ 0.60. By Wednesday, December 23, the price had fallen to nearly $ 0.20. Frances Coppola, financial analyst and XRP critic, described the lawsuit as “the beginning of the end” for Ripple and XRP.
However, as the weeks after the lawsuit have turned into months, the price of XRP has steadily increased. Why is this?
Marie Tatibouet, chief marketing officer at Cryptocurrency Exchange Gate.io, told Finance Magnates that XRP investors’ attitudes towards the situation are changing over time: “XRP investors are just fed up with the SEC lawsuit,” she said.
“When the lawsuit was announced, many people were signing XRP’s death warrant and Ripple was unable to enjoy the effects of the 2020-2021 bull run. However, as Ripple slowly gains an advantage in its legal battle with the SEC, investors appear to be on it to have reacted by flocking to the market in droves. “
An “Early Legal Victory” For Ripple In The SEC Case?
In fact, over time, many investors seem to see XRP as undervalued due to the lawsuit.
Maria Lobanova, founder of the PR agency Interstellar Digital, described the current price level of XRP to Finance Magnates as “severe undervaluation in connection with Ripple’s lawsuit with the US Securities and Exchange Commission”.
That narrative seems to be gaining strength as Ripple appears to be gaining ground in the courtroom. On Tuesday, CoinDesk reported that Ripple had been given the right to “examine the SEC’s internal communications on how to determine whether a cryptocurrency is a security”. Nairametrics called the move “an early win” for Ripple.
Ripple Takes An Early Legal Victory, XRP Breaks Above $ 1 USD For The First Time In 3 Years 💪💪💪https: //t.co/s9j1qtB5TD
– MackAttack XRP (@ MackAttackXRP) April 7, 2021
Mathew Solomon, one of Ripple’s attorneys on the case, said Ripple finds that the commission compared XRP to Bitcoin and Ether (both of which were officially declared non-securities). The lawsuit could be “over” for the SEC. Should the lawsuit turn out to be favorable to Ripple, XRP could soon return to Coinbase and other cryptocurrency exchanges.
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As the lawsuit may turn in the direction of Ripple, more and more investors may jump back into XRP in anticipation of a win.
Retreat ahead? “If you look at the purely technical analysis, from now on it definitely looks like Ripple is overrated.”
Even if the lawsuit appears favorable to Ripple, things can change at any time. This, in turn, could have a significant impact on the XRP price.
Even if the price of Ripple is not negatively affected by the lawsuit, many analysts believe that a decline in the XRP price could occur in the near future.
Marie Tatibouet of Gate.io told Finance Magnates: “If you look at the purely technical analysis, from now on it definitely looks like Ripple is overrated.”
“There is definitely a brief bearish correction around the corner before buyers come back with another charge to hit the $ 1 psychological level,” she said.
XRP “has a long way to go before hitting an all-time high of over $ 3.00.”
On the short term, however, Marie also pointed out popular trader Peter Brandt, who recently tweeted that XRP has formed an incredibly rare buying pattern known as the “Compound Fulcrum” which is “very good at the Ripple price.”
This is known as the compound pivot point and can be a pretty strong buy signal. $ xrpbtc pic.twitter.com/cjZQoh7t8c
– Peter Brandt (@PeterLBrandt), April 6, 2021
Benjamin Leff also advised Finance Magnates that while XRP’s recent gains may seem significant in the short term, they may not be significant enough in the long term to warrant a serious correction.
“A correction is always the first thing that comes to mind when people see something making a significant leap so quickly,” Leff told Finance Magnates. “Even 40% in one day seems like a lot in the crypto world.”
“The real thing, though, is to look at the bigger picture and realize that while XRP is up, it has a long way to go before it hits an all-time high of over $ 3.00.”
The ripple continues to push
In the meantime, Ripple appears to be sticking to its fundamental mission: to become the world’s standard “global payments infrastructure” and build a “more inclusive financial system”.
In addition to acquiring Trianglo, Ripple recently announced that its network could be used as a “neutral bridge” to tie the central bank’s digital currencies (CBDCs) together and make them interoperable.
Additionally, Ripple appears to be making a concerted effort to establish itself as a “green” blockchain company. In a tweet published yesterday on Ripple’s official Twitter account, it says: “XRP only uses 0.0079 kWh of electricity per transaction, compared to 700 kWh for other cryptocurrencies. Discover how #XRP is working towards a digital and sustainable future. “The tweet also included a link to a blog post about the environmental impact of XRP.
#DYK XRP only uses 0.0079 kWh of electricity per transaction, compared to 700 kWh for other cryptocurrencies? Discover how #XRP is working towards a digital and sustainable future. https://t.co/Mf6k9x5KUC
– Ripple (@Ripple) April 6, 2021
Earlier this year, Monica Long, general manager of RippleX, said in an interview with Finance Magnates that Ripple “wanted to take the lead in the carbon neutral commitment.”
Monica told Finance Magnates: “[Ripple] worked with the Rocky Mountain Institute and Energy Web Foundation to develop an open source tool that would allow other blockchains to commit to decarbonization and action.
What do you think about the future of Ripple and XRP? Let us know in the comments below.