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Ripple (XRP): Is It on the Up After a Tough Period?

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Ripple is designed specifically for financial institutions and banks to transact. That’s what differentiates it from Bitcoin and other cryptocurrencies – in contrast, they are used as digital currency for individual transactions.

XRP is the ecosystem’s bridge currency, allowing for faster and cheaper cross-border transactions. Ripple has established partnerships with several major financial institutions and banks, which adds to its legitimacy and potential for mainstream adoption.

But Ripple has had a rough year, much like most other tokens in the crypto space. However, from being accused of amassing funds through unregistered digital asset security offering to losing nearly fifty percent of its value in the past year, XRP has been to hell and may be on its way back.

Although we cannot always have bullish runs, the crypto winter has trended longer than anticipated. Reliable sources postulate that up to a trillion dollars has been liquidated from the cryptocurrency industry.

In the past year, XRP soared to an all-time high of $0.91. However, the year’s close saw it trading at just above $0.34.

This week has been bullish for the Ripple ecosystem. There has been a 4.4 percent increase in price, and everybody wants to know why.

Well, it happens that cryptocurrency trading is a highly speculative trade. Of course, with the help of a few pointers here and there, many traders can profit from the markets.

Ask many crypto traders what their strategies are, and they’ll tell you to watch out for blockchain news. News always affects the market.

New information, no matter how seemingly insignificant, may move the markets. But we can only sometimes tell what caused significant volatility.

Shortly, we’ll speculate about what could be responsible for the new highs Ripple seems to be creating. First, let’s talk about why it’s still valid today.

One of the critical features of Ripple is its use of the XRP token, which serves as a bridge currency between different fiat currencies. This allows for faster and cheaper transactions than traditional methods like SWIFT.

Another significant advantage of Ripple is its scalability. The network can handle up to 1,500 transactions per second, making it much faster than other cryptocurrencies.

In December 2017, South Korean and Japanese banks wished to increase the speed of same-day transfers of non-local currencies. They also wanted a system that could cut costs by as low as 30 percent.

That information led to an increase in the value of Ripple because the big guns were testing a service on the blockchain.

Ripple also strongly focuses on security, with a decentralized network and advanced encryption to protect users’ information. This makes it a suitable option for massive funds movement.

Additionally, Ripple has established partnerships with several major financial institutions and banks, including Santander, American Express, and Standard Chartered, which adds to its legitimacy and potential for mainstream adoption.

Another critical feature of Ripple is the XRP Ledger, which operates as an independent, decentralized, and distributed public blockchain that enables cross-border payments.

Ripple’s unique features make it a valuable and innovative cryptocurrency worth keeping an eye on.

So, don’t be too surprised when you see a retracement that could lead to a long-term bullish run. There are many services the network has offered and will continue to offer. Therefore, the coin itself is one reason it may be rising again.

Many other cryptocurrencies in the market have also seen a bullish run recently, which may indicate the end of the crypto winter is near.

While it may not seem like it, cryptocurrencies are not necessarily the reason for the crypto winter. The lack of regulation is.

In other words, cryptocurrencies are still revolutionizing the future, but these are the early stages.

You can explore limitless possibilities because of blockchain technology, so there’s no visual end in sight yet for digital currencies. However, no one truly knows when the bearish momentum is ending.

Another reason the value of XRP may be on the rise is the news regarding Bitcoin.

Earlier in the week, Bitcoin rose to a peak of $21,650, a value it struggled to attain for weeks. Then it closed nearly a thousand dollars lower, all in one day. Currently, the bullish run appears to be starting again.

News in the crypto world is that Bitcoin miners’ outflows are experiencing surges lately. If you don’t know, a miner outflow is a graphical measurement of the value of Bitcoin discharged from miner reserves.

These reserves are wallets where significant holders of Bitcoin keep their digital assets. They are large values because we’re talking multi-million-dollar investments.

On Wednesday, there was a large inflow of bitcoin into the cryptocurrency trading exchanges. The news was that Bitcoin miners exchanged their tokens for smaller fiat currencies.

Conversely, compared to the history of crypto trading, a significant sale of Bitcoin has not caused other cryptocurrencies to lose value. At most, the effect of this recent sale on other cryptocurrencies has been a retracement that has lasted for days.

How has this information affected Ripple? Well, it could be that a number of the 669 Bitcoins that were pumped into exchanges were sold off for Ripple. It coincides when you check the charts.

That day, the sale of mass amounts of Bitcoins resulted in a minor retracement from the downtrend that’s XRP price action. Moreover, volatility is a significant aspect of trading cryptocurrencies. Therefore, don’t risk more than you can afford to lose.

Finally, the rebuttal of the SEC lawsuit by the Ripple organization may also be a valid reason for Ripple to experience a long-term retracement from the bearish market. The news circulating the industry about Ripple indicates that the ongoing lawsuit could end by the summer, perhaps providing a clean record for the XRP network.

Things are looking bright for XRP, as it appears to be retracing from the bearish momentum. Let’s wait and see how many resistant levels Ripple is prepared to take out.

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