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Ripple Labs remains one of the blockchain industry’s biggest companies. The company’s XRP coin is the industry standard for international payments.
XRP has endured a bit of a challenging year. This is because the Securities and Exchange Commission (SEC) sued Ripple Labs for securities fraud. But, recent developments show some hope for the coin.
It is worth noting that XRP has performed exceptionally well this year. The SEC suit against Ripple came last December, and the coin’s price went down. Major exchanges stopped supporting XRP, and investment companies also deserted the coin. It was a bad look.
Still, XRP managed to rise. When the market rally kicked into full gear, XRP was on a rocket. The coin went as high as $1.92. This is the highest point that XRP has had since the bull market of 2017. Investors continued to buy the coin even though they understood that there was still a legal case.
When the market downturn came, XRP understandably went down. But, the coin’s price still didn’t do so bad. It has also continued to move in tandem with the other coins. So, XRP jumps when there is a rally and dips when there’s a bearish run. If anything, the currency is showing that it is a solid option once again.
New Developments Give More Life
Besides the performance amid the case, XRP is giving a lot of hope to investors. This is primarily due to developments coming from the coin and Ripple.
Earlier this month, Ripple confirmed helping the Royal Monetary Authority of Bhutan to build a central bank digital currency (CBDC). The company’s announcement explained that the central bank will use its private ledger to issue and manage the CBDC. The government of Bhutan wants to improve international payments. It is also looking to increase financial inclusion for its citizens. So, a partnership with Ripple seems like the best way to go.
Ripple has one of the most robust blockchain networks in the world. The company also has vast resources, so it can indeed help Bhutan to join the CBDC race.
Like that wasn’t enough, XRP also got a significant boost from a former regulator. Rosa Rios, a former U.S. Treasurer, supported the coin on Twitter. She wrote that Bitcoin is more of a speculative asset, while XRP has a solid use case.
“XRP’s primary purpose is facilitating cross-border payments while other cryptos find their value in speculation. China’s latest move brings this point home,” Rios said.
Of course, it is worth noting that Rosa sits on Ripple’s board. So, she will have a natural incentive to support XRP.
Another development came earlier this week. Ripple announced that it has launched a fund to support the non-fungible token (NFT) space. The new fund will commit $250 million to support NFT creators and marketplaces. Ripple also added that its overall goal is to support crypto adoption through the fund.
Ripple is hoping to address a lot with this fund. The company wants to help NFT platforms to improve their user experience. It is also looking to reduce the transaction fees on these platforms and combat environmental effects. Evidently, the company is coming for Ethereum.
The fund will be open to NFT marketplaces first. All beneficiaries will build on the XRP Ledger, so Ripple also benefits. The company has cited that its blockchain offers fast and cheap payments to everyone.
Analysis: Does XRP’s Outlook Seem Good?
Adoption plays like these are always great for XRP. But, let’s see what the technicals say.
XRP currently trades at $0.93. This is an increase of 3.16 percent in the past 24 hours. But, XRP has been down by 5.60 percent in the past week as well.
The coin’s price currently trades below its short-term moving average (M.A.) indicators. These include its 10-day M.A. of $0.95 and its 50-day M.A. of $1.11.
But, the coin is also trading above its sling-term MA indicators. This shows that XRP is better for long-term buyers.
We noticed a negative trend on XRP’s moving average convergence divergence (MACD). This shows that XRP has a sell signal for now. But, things could turn around. The market is currently trying to kick-start a bull run, with the broader market gaining 1.09 percent in market cap.
In general, XRP’s short-term outlook still doesn’t look too good. But, long-term investors can feel free to buy it. The asset’s relative strength index (RSI) is 42.55, so it is severely underbought.