Is Ripple a good cryptocurrency investment in 2022?
Is Ripple a good cryptocurrency investment in 2022?
Ripple (XRP) is not only one of the most prominent cryptocurrencies in the world, but also one of the most fascinating.
It doesn’t pride itself on its decentralization like Bitcoin, Ethereum and other well-known cryptocurrencies. Instead, the cryptocurrency is closely associated with a number of financial institutions, investment firms, and organizations around the world.
This may go against the Crypto philosophy, as many traders believe that the biggest selling point of cryptocurrencies is their independence from the influence of companies located outside of the cryptocurrency ecosystem. Cryptocurrency specialists, on the other hand, are increasingly arguing that this could be the driving force behind Ripple’s success.
Ripple history and timeline
The company Ripple operates a payment protocol that is a payment service, a money transfer network and a currency exchange in one. The protocol can be used with both digital currencies and traditional forms of money, as well as commodities. XRP is the native coin for this protocol.
Sometime in 2020, the firm faced a lawsuit from the SEC that posed a risk to Ripple’s future. The value of XRP can fluctuate wildly. Pricing was subject to significant shifts throughout 2021. However, bearish sentiment in the market caused the price to drop, causing XRP to lose over 70% of its value between May 18th and July 2020.
The main contributor to the extreme volatility of the Ripple market has been the constant updates regarding the SEC complaint. While increased volatility almost always presents an opportunity to earn a larger profit, investing in it comes with a high level of risk.
Due to the bear market that devastated the crypto market in 2022, Ripple has barely posted gains this year, comparable to the all-time high it hit in 2020, but does the future look bright for the token?
Both industry big players and average investors will find it difficult to accurately predict Ripple’s future price. Do all analysts think the case will end the same way? Where can we expect the price to go?
The impact of the SEC case on Ripple
In 2020, the United States Securities and Exchange Commission (SEC) initiated legal action against Ripple Labs and against the company’s current and former CEOs. The SEC claimed that XRP should be classified as a security. A security is a type of financial instrument that can be bought and sold but has no practical use. It represents ownership of a company or other entity.
In late December 2020, a court case was launched over XRP tokens being used to fund the Ripple platform, which enables money transfers for retailers.
When information about the complaint filed by the United States Securities and Exchange Commission against Ripple Labs was released on December 21, XRP’s market cap fell by $16 billion, or 63% of its previous value. After cryptocurrency exchanges halted trading in the coin and cryptocurrency funds liquidated their investments as a result of the lawsuit, the coin’s price plummeted.
With an ATH of $3.40, XRP’s current price of $0.48 could be attributed to its litigation with the SEC. With news and speculation heavily influencing financial market movement, sentiment regarding investing in XRP has largely been fueled by pessimism about the future of the coin.
However, how much impact will a Ripple win in the SEC case have on Ripple price and will it boost confidence among aspiring investors once the whole legal debacle is over?
Is Ripple a good investment?
XRP has a number of things going in its favor, especially if Ripple succeeds in its case against the SEC and the IPO goes ahead as planned. Ripple already has a variety of cutting-edge financial services that make it possible to make payments that span many platforms and blockchains.
For example, the Ripple-powered PayID tool allows users to move currencies between different platforms using an ID that is both easy to read, secure and compatible with any network operator.
Similarly, One Pay FX enables fast or cost-effective same-day international payments with full transparency on fees and cash arrival times. XRP has been reviewed for use in international transactions by numerous financial organizations, including MoneyGram.
These are positive signs for XRP’s value going forward.
Several events that took place in 2021 and early 2022 underscored that the XRP/USD pair still has significant speculative characteristics due to the ongoing legal battle and the overall bearish nature of the cryptocurrency market. The XRP/USD pair, on the other hand, continues to generate volume and volatility. XRP has shown that it can increase its market cap cheaply, but then lose it almost entirely in a short period of time. It is an excellent point for traders willing to take risks.
The number of industry experts who believe that XRP will hit $10 in the near future, or at all, is pitifully small. XRP could follow Bitcoin’s path and rise again if the bear market rebounds and starts to rise again. The consensus among these industry experts is that Ripple’s price could reach $10 or maybe $25.
Others believe that XRP’s capabilities could bring it to the same level of acceptance and industry recognition as Bitcoin – widely regarded as the benchmark for cryptocurrencies – and Ethereum as well.
Ripple is gaining market share and notoriety thanks in large part to the speed with which its transactions are processed, the low fees it charges, and the growing number of partnerships it has won.
Due to the fact that XRP has the potential to experience a significant price increase, it can be a suitable choice for you to start your cryptocurrency investment portfolio with. Be prepared for the coin’s price to either drop dramatically or spike sharply depending on the ruling of the SEC court case.
You have two choices: either risk it and buy now while XRP is at its lowest in over a year, or keep your powder dry and cross your fingers for an even better deal.
Australian crypto exchange platform TimeX makes it possible to invest in cryptocurrencies using the Australian dollar and save some money on fees. If you are planning to buy XRP Australia, you should definitely try this online service. But it’s important to only buy cryptocurrency at this point if you can afford to lose some or all of your investment. The market factors driving the rest of the cryptocurrency market lower are likely to impact XRP in the near future.
Disclaimer: The information contained herein is provided without regard to your personal circumstances and therefore should not be construed as financial advice, investment recommendation or an offer or solicitation to engage in transactions in cryptocurrencies.