Despite Ripple’s advancement in the SEC case, XRP prices tumbled by more than 77% since the start of the crypto crash. Many investors already left XRP for other crypto projects such as Cardano or Solana. The current price of XRP reached a critical area. Prices can either rebound higher or continue to crash lower. Will XRP crash to 20 cents? Let’s analyze 😉
What is Ripple Company?
Ripple is a San Francisco-based FinTech company behind the global payment platform RippleNet. They basically created the XRP ledger blockchain along with its native token XRP. In fact, Ripple company started way back in 2004, before even cryptocurrencies were invented. They were trying to create an Internet of Value and create their own money, and RipplePay was created back then. Their network was small and the software was centralized. That’s why later in 2012, RipplePay merged with another company called Open Coin, and together they formed what is known today as Ripple.
What sets Ripple Company ahead of its Peers?
Ripple is a project that allows users to send, receive, hold and move currencies across borders in a fast and reliable way. Our current system which relies on banks and payment gateways is slow, fragmented, and expensive. Ripple company can settle transactions in 3 to 5 seconds from anywhere in the world. It is in fact much faster than Bitcoin and Ethereum!
Additionally, the infrastructure is highly scalable and is able to handle more than 1,500 transactions every second. You might ask now, How is this all possible? Well, RippleNet uses the open-source XRP ledger blockchain to track, process, and guarantee all transactions. But unlike Bitcoin, XRP does not use Proof-of-work and has no concept of mining. This means that the blockchain’s power consumption is minimal and is able to keep transaction fees low. XRP transactions are handled by an independent community of validation nodes who maintain the network and the transaction protocol.
Another plus for Ripple is that they are anti-money laundering compliant, with fraud detection, sanction screening, and regulatory reporting in place.
What is the Story of Ripple and the SEC case?
Back in December 2020, the SEC slammed Ripple with a lawsuit for allegedly selling securities without a proper license. Of course, this statement is greatly debatable. First, cryptocurrencies were never considered a security, and by nature are not regulated. Second, there are no clear rules or specifics around cryptocurrencies yet. Ruling out that Ripple was dealing in a security that is not registered is plainly absurd.
The price of XRP immediately took a toll for the worst and dropped to USD 0.18 following the news. On the other hand, Block.one, the company behind EOS had the EXACT SAME allegations with the SEC, and they managed to settle within 1 year. Currently, there are many speculations that Ripple company is going to do the same.
XRP Price crashed and reached 30 cents
In a previous article, we predicted how XRP price was risky, and how the break in the $0.38 price mark would bring XRP prices down the $0.30 as a first target. This is exactly what happened, as XRP prices fell and briefly broke the $0.30 price mark. Other cryptos also fell to their respective important areas such as Bitcoin or Ethereum, reaching $20,000 and 1,000 respectively.
For XRP however, its prices prior to the crash were far away from their all-time high. XRP reached back in 2018 a high price of $2.7. But in November 2021, when the crypto crash started, XRP prices were around $1.35. This explains how many investors preferred switching to other promising crypto projects.
XRP Price Prediction – will XRP crash to 20 cents?
It is very probable that XRP reaches the price of 20 cents. In fact, this is the last strong support of XRP. Its prices lingered around this price area for a very long time, from back in 2017 prior to the first crypto bullrun, to after the SEC lawsuit when prices crashed hard again. However, this would assume that the crypto market as a whole continues to crash throughout the next week.
If the crypto market rebounds, XRP might rise slightly and test the resistance area between $0.38 and $0.40. However, from the current fundamentals of the market currently, this case might not happen. Coinbase got caught selling its data to US governmental entities, KuCoin is on the verge of bankruptcy. Those will definitely have a negative toll on the crypto market.
