- XRPUSD turns bullish, and crypto boom
- Ripple nearing $1
- Ripple vs. SEC case takes shape
Ripple (XRP) is one of the coins leading the bounce back spree in the cryptocurrency market following a recent sell-off to seven-month lows. XRPUSD has turned bullish, rallying more than 60% from multi-month lows. The rally has coincided with an uptick in demand for riskier assets in the capital markets.
XRPUSD technical analysis
After powering to highs of $0.8726, XRPUSD is staring at short-term resistance near the 0.9000 mark, above which the crypto could make a run for the $1 a coin level. On the flip side, short-term support is at $0.8526, the short-term support level above which the crypto remains bullish.
A drop followed by a close below the $0.8526 could leave XRPUSD susceptible to further losses back to the 0.8000 level. XRP is looking increasingly bullish given the strength of the upward momentum and renewed focus on highly battered digital assets.
Improving crypto sentiments
Ripple bounce back does not come as a surprise as investors are increasingly betting on assets capable of hedging against rising inflation. With stocks under pressure amid concerns that the Federal Reserve will hike interest rates, investors are increasingly looking for ways to diversify their investment portfolios.
In addition, XRP, just like other cryptocurrencies, is benefiting from a solid US jobs report for January that showed the economy added 67,000 jobs. The significant beat strengthens investor investment, fuelling a rush to riskier assets such as cryptocurrencies.
XRPUSD’s upward momentum is also fueled by positive sentiment around a court case involving Ripple and the US Securities and Exchange Commission. The agency was issuing the company for allegedly selling unregistered security to the public, claims the firm has vehemently refuted.
XRP remains one of the most prominent cryptocurrencies, which explains why it has continued to follow Bitcoin and Ethereum powering high. Its increased adoption and use case in the mainstream financial sector to enhance cross-border payments affirms its growing popularity among investors.
Ripple appears to be trading at a great discount going by its small market cap compared to other popular cryptocurrencies. However, the coin has what it takes to generate tremendous returns, given its Blockchain’s unique and appealing features in conducting payments.
Fast cross-border transactions times are attributes that have seen the Ripple network attract tremendous use in the traditional financial sector. In addition, it charges some of the lowest fees to enable transfers. Ripple consensus mechanism works by an instantaneous poll, enabling fast and cost-effective transactions compared to proof of work mechanism leveraged by other blockchains. Compared to Bitcoin and other cryptocurrencies, Ripple is not energy-intensive, a feature that boards well with sustainability and ESG principles advocates.
In addition, Ripple is fairly valued as it is trading for less than $1 a coin. XRPUSD might offer the best route for gaining exposure in the burgeoning cryptocurrency sector compared to other altcoins going for hundreds or even thousands of dollars.
XRP price prediction
With the crypto sector heating up, the prospects of XRPUSD bouncing to highs of $1 a coin is high. The cryptocurrency remains well-positioned to benefit from the buy rumor event that continues to drive price action in the sector.