The cryptocurrency market started on a bad note this 2022. Prices of many tokens were caught in a downtrend and lost more than 50%. However, the market is not favorable in other markets as well. Technology stocks did in fact lose a lot this year and are also in a downtrend. Ripple company is caught between many factors which dragged its prices lower. Can XRP reach 1 $ again soon and recover higher? Let’s explain everything about the XRP price.
What is Ripple XRP?
RippleNet is a worldwide payment platform developed by Ripple, a FinTech business located in San Francisco. They essentially established the XRP ledger blockchain as well as the XRP native token. In reality, Ripple was founded in 2004, long before cryptocurrencies were conceived. RipplePay was born out of their attempt to develop an Internet of Value and their own money. The software was centralized and the network was tiny. That’s why, in late 2012, RipplePay combined with another startup named Open Coin to become Ripple.
Is XRP a good buy in 2022?
If we were asking this question at the beginning of 2022, we would’ve definitely said no. In fact, crypto prices have been on the decline since November 2021. On the other hand, XRP prices today hit a very strong support zone delimited between the prices of $0.30 and $0.40. Buying XRP at current prices might be a good idea because of the following:
- The SEC case is still pending and is geared in favor of Ripple company
- XRP token is one of those cryptos that still did not reach its previous all-time high
- Prices of XRP corrected heavily towards a strong support area
Can XRP reach 1 $ again soon?
There are many factors that are currently affecting XRP prices:
- Bearish trend still going on since November 2021
- Negative sentiment in the crypto market
- Problems surfacing recently related to blockchain tech (UST’s collapse, Gas fee problems…)
- Negative perception in the mainstream media (Warren Buffet’s latest speech)
- Technology stocks in the red
- Ukraine war
All the above contribute in one way or another to creating a selling pressure, driving prices downwards. It is very normal to see XRP prices crash. On the other hand, now that prices kinda stabilized around $0.40, investors are starting to notice this level. Once the market rebounds, XRP can definitely make big returns and reach back the psychological price of 1 $, provided the entire market sentiment is getting better.
