Is It Too Late To Buy Ripple XRP?
No, it’s not too late to buy XRP. If market dynamics are anything to go by, it is still early days for XRP.
The Broader Market Is Rallying
The crypto market is heavily correlated to Bitcoin, and when it moves, the entire market moves with it.
In the past week, Bitcoin (BTC) has gained by 9% to trade at $47k. In the same period, most altcoins have gained by double digits.
For instance, XRP has gained by 53% in 7 days. This spells good tidings ahead for this crypto.
That’s because Bitcoin has a lot going for it right now that it could record even higher gains in short to medium term.
Recently, it pushed through a key moving average resistance at $44k and is now set to test key psychological resistance at $50k.
If it pushes through $50k, the sky would practically be the limit because most of the issues leading to its huge correction are gone.
This means the potential for XRP and other altcoins to gain even more is very high. If Bitcoin were to hit $100k, for instance, XRP would be well-positioned to retest its highs of 2017 if its current price action is anything to go by.
Ripple’s Ex-CTO Selling Is A Temporary Factor
For a while now, XRP has not performed as well as the other altcoins. While there are multiple factors behind this, one of them is the heavy selling by ex-Ripple CTO Jed McCaleb.
McCaleb holds billions of XRP and has been selling aggressively for over a year now. This has put a lot of downside pressure on XRP compared to the other altcoins.
However, at his selling rate, it is expected that he will be through his stash in a short while.
Once this heavy selling is over, XRP will be more correlated to the other altcoins. Given that crypto adoption is on an overall growth trajectory, better correlation with the broader market could see XRP test a new high in a very short time.
Its potential is evident in its current price action despite hundreds of millions of XRP flooding the market. It is an indicator that the underlying demand for XRP is high.
That’s a positive pointer to its prospects going into the future.
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Adoption Is Growing
One of the best reasons it is still early for XRP is its rate and potential for adoption.
Before the case between Ripple and the SEC started eight months ago, XRP adoption was on an exponential growth path.
Several banks were using it, and even MoneyGram was in the process of adopting it.
Once the case started, Ripple partnerships slowed down, and it even lost some of them, such as the one with MoneyGram.
This was a setback that negatively impacted the value of XRP. However, as the case continues, some institutions are still adopting XRP. The latest of these is a partnership between Ripple and Omani bank, BankDhofar.
Through this partnership, BankDhofar will use Ripplenet, which uses XRP for settlements, for transactions between the bank and a private bank in India.
It is also noteworthy that despite the case between Ripple and the XRP, most Asian partnerships have remained intact and actually grown.
This points to the strong underlying demand for Ripple’s settlement services, and for XRP. Two implications can arise out of this issue.
The first one is that if the case with the SEC turns out in Ripple’s favor, partnerships would explode almost instantaneously.
The effect on the price of XRP could be unprecedented. XRP rallied to $3 in 2017 based mainly on speculation of such partnerships.
With a key obstacle out of the way, XRP could easily blow through its 2017 highs and make new ones.
The other scenario is where the case drags on, but non-U.S banks keep adopting XRP as is happening at the moment.
In this scenario, XRP would still keep gaining value, as it is doing now. This, coupled with broader market growth, presents an opportunity for value appreciation in short to medium term.
Technical Indicators Point To Upside Potential
XRP’s technical indicators point to huge potential going forward. One of its biggest resistance levels has been at $1.
Now that it has pushed through it with high volumes and the broader market is turning bullish, there is lots of room for XRP to grow.
The next key target for XRP at the moment is $1.50. If the broader market keeps gaining, and it blows through this level, then $2 and above could be possible in the short term.
All this points to undervalued crypto and lots of room for growth in the long run. There is a strong confluence of both technical and fundamental factors working in its favour.
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