The cryptocurrency market seemed to have recovered from its June 2022 bottom. However, in the past 2 weeks, crypto prices started to tank yet again.There were no clear indications as to why this selloff was occurring, other than a mere selling pressure affecting most cryptos. In a previous article, we spoke about how the Wyckoff schema might be at play. Despite Ripple’s advancements, XRP prices seem to be crashing yet again. Why is XRP crashing? Hint: it’s not because of the SEC lawsuit.
What is Ripple (XRP)?
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.
Ripple SEC Update 2022: Is the Lawsuit in favor of Ripple?
It seems that the proof against Ripple will surface shortly. The date should be around Q4 2022 because the deadline for submitting oppositions to motions for summary is on or around October 18, 2022. Responses from the opposition must be delivered by November 15, 2022, at the latest. This suggests that we will be able to identify who obviously has the advantage in winning the case in the near future.
The XRP token, which is anticipated to jump right away once the news breaks, would surely gain from a victory for Ripple, according to some analysts. Clearly, this will help people again believe in Ripple. If the case was unsuccessful, XRP would be considered a security in the US.
Ripple is expanding Worldwide
Despite the negative outlook in the crypto market, Ripple company is doing good deals internationally. In fact, Ripple collaborated with Travelex Bank to launch its cryptocurrency on-demand liquidity (ODL) service in Brazil. The ODL of the digital payment corporation employs XRP to hasten the conversion and transfer of fiat money across nations. According to Ripple, Travelex is the first bank in Latin America to employ ODL. The bank was also the first to be registered with and permitted to conduct foreign exchange business by the Brazilian Central Bank.
In ordinary circumstances, we would’ve seen XRP prices soar in value. However, this is not the case as XRP is currently on the decline in tandem with the cryptocurrency market as a whole.
XRP Price Prediction – Will XRP Crash?
XRP prices were supposed to break the $0.40 price mark and continue towards their next target of $0.50. However, in a previous article, we warned that this might not be the optimum path for XRP as the crypto market sentiment is currently negative. That’s why we laid out the low price of $0.30 as a potential target. In figure 1 below, we can see that this is exactly what happened, as the current for XRP is around $0.32. The previous break of the green uptrend line was a clear indication that prices were going to drop, coupled with the resistance of $0.40 that was never properly broken higher.
If prices continue to drop (as is likely to happen), we expect XRP to breach the psychological price of $0.30 lower and reach $0.25, then $0.20 as the worst-case scenario.
