The long-standing debate of XRP’s securitization continues to haunt the cryptocurrency traders. While Ripple and R3 are growing at an impressive rate establishing partnerships all around the world, the nature of XRP is still unclear as the regulators have primarily focused on Bitcoin for now.
Recently, a silver lining in the cloud was seen after Coinbase’s Addition of XRP. While the CEO of Binance exchange, Changpeng Zhao is almost certain that XRP is not a security, he too confirms that the effect of its securitization would be detrimental.
The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn't look like a security to me, but that's just one person's opinion.
— CZ Binance (@cz_binance) December 12, 2018
Nevertheless, XRP is ranked second according to the total market capitalization. The total number of HODLER’s of XRP is considerably more significant than any other cryptocurrency in the world. Hence, if XRP is defined as security almost $13 billion will be wiped out of the cryptocurrency markets instantly. Moreover, investors who have bought XRP during the bull phase of 2017 or early 2018 would incur even higher losses.
Leading Trade Analyst Breaks the Delusion
Peter Brandt, is a leading chart analyst and financial asset trader. According to the expert, Ripple is nothing but a “glorified version” of PayPay. He added that the zeal towards XRP would turn detrimental as the hopes of the XRP HOLDERs will be shattered.
Brandt has cautioned the traders of manipulation in the price of XRP. Moreover, this does not come as a surprise as nature, circulating supply and fiat volume of XRP has always been a topic of controversy and debate.
The bag holders need to careful in their manipulation of this security (not a crypto). A decline below .2467 and they might be stuck holding a bag full of rotten goods. $XRPUST pic.twitter.com/KWN8gmeaEQ
— Peter Brandt (@PeterLBrandt) March 6, 2019
According to him, the bottom support to XRP is at $0.246 where the cryptocurrency began ascending in 2017 reaching an All-Time High of $3.40. A break below this level would devour investor confidence, and a comeback would be next to impossible. Currently, XRP is trading at $0.315 looking to break towards $0.33 level in the light of the current short term bullish sentiments of the market.
Moreover, XRP is undoubtedly the most popular altcoin with investors all around the world predominantly US, Japan, and Europe. Hence, if the bearish clouds re-appear and the apprehensions of the traders materialize, the cryptocurrency bear markets could sustain for another year.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com