XRP price have been under pressure recently and haven’t been able to capitalize on the positive sentiment built by the rising BTC. Currently, the coin has been under the regulatory pressure of its own as the fear looms of it been termed as a security or not creating a short-term negative for the coin. But long-term prospect still looks brighter as the coin is increasing its customer base and working on great partnerships.
The uncertainty around “security” status of XRP
One of the major reason that the Bitcoin is rising is that its ETF might get an approval and that would eventually open doors for institutional money flowing into the BTC. But that doesn’t seem to be the case with Ripple XRP as the institutions that have interest in cryptocurrencies and decentralized businesses are actually running away from XRP, as there is a possibility that XRP might be considered as a security being considered centralized. The fear of this regulatory uncertainty is so high that none of the fundamental news is good enough to pick the sentiment for the coin. Even though Ripple’s Chief executive Brad Garlinghouse last month at a conference said that the ledger is not dependent on the company, going so far as to say that XRP is not a security but still the market is in no mood to accept it.
If technical analysts are to be believed the coin in short-term has a very limited upside and for it to breach USD 0.50 would be really a task unless something really falls in favor of the XRP. Nearly all technical indicators currently show bearish patterns on the chart. Some of not so optimistic analysts also are predicting the prices of XRP may fall to levels of USD 0.25 if the sentiment around XRP doesn’t improve.
If we look at the charts, the 7-day price chart of Ripple clearly shows the coin struggling against the Crypto market bellwether the bitcoin which is enjoying a sought of the 3-week bull run.
But is XRP getting stronger to run a long race?
If we take away the regulatory uncertainty that is built around XRP regarding it being termed as a security, the coin is actually doing wonders. There is some great news flow that is going in favor of the XRP. It’s partnership with financial institutions in increasing who want to use Ripple’s products including the XRP. It’s working with regulators so that they can be friends with the nascent technology.
If we look at some recent news that has hit the markets in favor of XRP would include:
- A Blockchain exchange tech company Alphapoint has announced registration is open for DCEX exchange, the first platform to use the Ripple XRP token as its base currency.
- In another news, Wirex, that provides a crypto-backed Visa debit payment card for residents within the European Economic Area (EEA), has included XRP in the list of its supported cryptocurrency.
- The news was appreciated by the Ripple investors and users that the product received XRP deposits totaling over $2 million in the first twelve hours of product release.
- On Social front Ripple also partnered with Madonna on her 60th birthday to raise funds for vulnerable children in Malawi.
The recently published Q2 2018 XRP Markets Report, also shows XRP customer base growing even though the sales declined. The fall in sales did not dampen the sentiment of the Ripple team as it termed the period its “best quarter ever in Q2,” at least in terms of the number of customers signed up.
Will the clearing of regulatory uncertainty for XRP begin the bull run for the coin? Do let us know your views on the same.