Crypto industry stakeholders lauded a Thursday court ruling finding XRP is not a security, which may help relieve regulatory pressure weighing down on their sector.
Ripple is a network that connects financial institutions and offers faster, safer, and cheaper international money transfers using its XRP token as currency for these transactions.
What is XRP?
Ripple Labs created XRP as its native currency on their Ripple network to facilitate fast, cost-efficient cross-border payments without energy intensive mining processes. Instead, all 100 billion tokens released at once by their company. Of that total supply of 100 billion, roughly 47 per cent are currently in circulation with the rest belonging to them and their parent company Ripple Labs.
Banks and money transfer companies that rely on Ripple can save time and money using XRP on its network; transactions usually only take seconds to complete and offer more secure methods than money-changers’ costly fees.
However, like any cryptocurrency investment, XRP is risky and should only be invested with funds you can afford to lose. The price may fluctuate as market reactions change depending on news about Ripple and its future success – thus why keeping abreast of industry updates and news can be essential for making smart decisions in this space.
Why is XRP/USD popular?
Ripple Network provides products used by banks, payment providers and digital asset exchanges to send money around the globe. As part of these solutions, it markets its XRP token as one key component. While some experts see its potential as becoming a global currency, Ripple faces competition from other cryptos such as bitcoin.
Ripple was established in 2012 as Opencoin but quickly transitioned into its current name: Ripple – with its namesake protocol developed with the goal of moving financial institution transaction data onto open frameworks that would reduce costs significantly. Ripple’s technology allowed for fiat currency values to be converted to XRP before being transferred directly, thus eliminating transfer fees and shortening processing times.
Though its adoption remains to be seen, many investors view XRP as an attractive investment option – especially if its price rises beyond its all-time low point of $0.25 set at the start of 2021.
How does XRP/USD chart look like?
The XRP/USD pair is one of the most sought-after cryptocurrency pairs. XRP is the native digital asset used by Ripple Labs Inc of US to power their XRP Ledger system designed to speed up international payments faster and cheaper.
XRP can serve as a bridge currency, enabling financial institutions to conduct transactions with their customers more quickly. You can buy and sell it for USD on cryptocurrency exchanges such as Coinbase or Kraken; however, be mindful that trading XRP may incur tax consequences in your country of residence.
Due to the volatile XRP price, it’s vital that traders do their research before investing. Technical analysis may help forecast XRP price movements; however, no matter how advanced it may appear. It is impossible to know the future with certainty and traders must always adhere to risk management techniques and only invest what they can afford to lose.
What are the factors that affect the US dollar value?
The US dollar serves as a global reserve currency and, as such, its value can often be affected by events around the globe. Increases in unemployment can reduce consumer spending, decreasing demand for dollars. When foreign investors sell off bonds and stocks in USD to return back home currency exchange rates can have similar ramifications on its value.
Ripple’s price fluctuation against both Bitcoin and the dollar can also have an effect on its price. For instance, if Ripple fails to find enough banks willing to adopt its technology, this could reduce profitability for its parent company and cause lower coin prices overall.
If you are interested in trading XRPUSD, both spot and futures sections of cryptocurrency exchanges offer trading services for this currency pair. However, for longer-term trading strategies we suggest using professional trading platforms like ATAS which offer deeper analysis on smaller timeframes to identify key support and resistance levels.
