Ripple (XRP) is once again embroiled in legal battles over its alleged securities sales. The company is currently being represented legally by a former SEC chairperson, Mary Jo White in the hopes of smoothening things over with the Securities and Exchange Commission. Ripple (XRP) has succeeded in winning over a lot of industry leaders including some big names. Ripple may be no Goldman Sachs or JP Morgan but it sure is acting like one and it wants the world to see that. That is all very impressive on part of Ripple and any shrewd investor would be drooling to get a piece of Ripple, the company at this point despite any temporary legal troubles. In fact, recent negative news about Ripple have given investors more time to crunch the numbers on this investment and positions themselves to invest.
However, that is not to say that investing in Ripple or investing in XRP is one and the same. Despite the outcome of this recent lawsuit, Ripple (the company) should be fine. Realistically, the chances of XRP being labeled a security are also insignificant and XRP should also be fine, for now. Ripple assured a lot of its XRP holders that the company will encourage financial institutions to use XRP for their X Rapid, source liquidity solutions. However, so far the company has failed to make any significant breakthrough in this regard.
The price of its token, XRP has continued to spike up astronomically based on speculation and hype and it is all set to begin another bullish cycle with the same vigor. The price has traded well against Bitcoin (BTC) as it surpassed both Bitcoin (BTC) and Ethereum (ETH) in percent growth last year. The same will most likely follow this year as Ripple (XRP) seems poised for future growth. While some may believe that Ripple’s XRP token is insanely overvalued, it seems to make little difference to mainstream XRP holders who think it is still way too cheap at $0.66, down from $3.2 in January this year. Unlike Bitcoin (BTC) and Ethereum (ETH), Ripple (XRP) has failed to attract any institutional interest so far. So, most of its investors are retail traders who seldom question the use of XRP but believe that XRP will continue to derive value from Ripple’s success. Most of these investors are also eager to sell at the sight of a temporary setback which often leads to Ripple (XRP) suffering the most losses during a market drawdown.
Ripple (XRP) is currently trading at a price of $0.65 down from $0.70 yesterday. The price has held the long term support line and is currently poised for further gains. Favorable news related to the ongoing lawsuit might push the price past the $0.70 mark. The 4H chart shows the RSI nearing overbought levels which means the price will have to move up in retracements, so the climb will be a steady one. While Ripple (XRP) may not be a good long term investment until the future of XRP is clear, it continues to be a good short term investment. The XRP/USD pair also presents good intraday opportunities for day traders.