Reading time: ~ 2 m
The XRP coin was trading at $ 0.83707 on Thursday morning, but unexpectedly rose 12% in just a few minutes. This was the sharpest daily rise in cryptocurrency since September 22nd.
This rise pushed XRP’s market cap to $ 42,069,969,368, 1.72% of the market cap of all cryptocurrencies. Earlier at its peak, XRP capitalization was $ 83.44071B.
XRP has traded in a range of $ 0.83 to $ 0.92 in the past 24 hours. At the time of publication, the asset has almost returned to its one dollar price.
Over the past 7 days, XRP has seen a drop in volume, as it shed 8.83%. XRP volume in the last 24 hours amounted to $ 4,847,519,865 or 3.43% of the total volume of cryptocurrencies.
It is difficult to say what influenced the sharp rise in the asset. From the latest news, we can highlight the speech of the former head of security at Coinbase Brian Brooks. He suggested to Congress that XRP should be listed on any legal US exchange if regulators such as the SEC would treat it as a security without limiting its functionality and operation.
Brooks used the XRP example to point out an existing problem with placing digital or crypto assets under traditional financial regulation. To treat cryptocurrencies as securities, the regulator must gain full control over a digital asset to protect American investors, which is impossible due to the decentralized nature of some assets.
The future dynamics of the XRP rate largely depends on how the company’s litigation with the US Securities and Exchange Commission (SEC) will end.
History shows that similar court cases in the United States have been pending for years, and there is no need to wait for a quick resolution of the situation. Moreover, the course of regulation of the entire crypto market will depend on the outcome of this case.
In recent months, the asset has traded below the dollar, dropping to $ 0.6 and causing losses to traders, even in those moments when the news from the courtroom was positive for the asset. It should not be ruled out that the founders of Ripple will agree to go to the world by bargaining for favorable terms.
Many experts expected that the project management would agree to pay fines and the project would continue its cloudless existence, but, as we can see, this is not happening.
It is important to understand that Ripple is not retail investors, it is financial firms, banks and payment systems – all those with whom the management has entered into partnerships for several years now.
Therefore, you need to enter XRP with caution: the coin is extremely susceptible to “pumps” and “dumps” (Pump & Dump – a scheme of artificially inflating quotes with the subsequent sale of an asset at a peak).
At the beginning of winter 2018, the asset was worth more than $ 3.5, but in 2021 the coin can hardly hold the one dollar mark. Therefore, many experts continue to stubbornly call Ripple a “scam”, because it was created as a scam, was sold as a scam and is now traded as a scam.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
#XRP #Cryptocurrency #Gains