Ripple (XRPUSD) has moved into bullish territory and broken through some resistance levels against the US Dollar. Traders should closely watch price action to look for long trade opportunities.
Ripple offers a comprehensive suite of financial institution products and services. Their signature product, cross-border payments system allows banks to send money in minutes.
XRP is a bridging currency
XRP is a cross-border payment currency designed to facilitate lower cost cross-border payments than traditional banking systems. While other cryptocurrencies, which primarily exist for speculation and as store of value purposes, exist solely as stores of value; unlike XRP which functions within the financial system to facilitate payments; in essence replacing USD as settlement currency among banks by eliminating exchange fees and shortening processing times.
Ripple uses XRP tokens as liquidity for transactions, yet doesn’t depend on them to function. With on-demand liquidity available through on Ripple network accounts and partnerships such as those with Santander bank. XRP can even be exchanged for other currencies and assets on demand without the need for prefunded accounts; this allows Ripple to partner with both remittance providers as well as major banks like Santander.
The price of XRP to USD can be highly volatile, yet often follows a long-term trend. To identify this movement, traders can utilize various moving averages at different intervals to identify and trade accordingly. Furthermore, traders can take advantage of daily range to capitalize on short-term price spikes and dips.
It is a utility token
Ripple currency, known by its initials XRP, is an extremely flexible utility token designed to exchange fiat and cryptocurrency assets and transfer money between countries. It has become known as an alternate to SWIFT for sending international transfers of funds; boasting high volumes and being traded on numerous exchanges worldwide.
Ripple’s centralized nature leaves it more susceptible to censorship than decentralized cryptocurrencies like bitcoin and may compromise its value, yet several large financial institutions such as Santander and Bank of America rely on it as an efficient transaction platform.
Ripple Labs developed the XRP cryptocurrency and has made it into one of the top-10 digital assets based on market capitalization. There are 100 billion coins total, 55 billion are held escrowed. According to their claim that it does not violate Howey Test – an established Supreme Court test used for classifying crypto assets as securities – they use RippleNet system to validate all their transactions and ensure security of transactions.
It is a digital asset
XRP is one of the most coveted digital assets, used as an international currency between financial institutions with zero fees or wait time when sending and receiving funds across borders. While there has been some debate surrounding its usage, XRP remains one of the top traded cryptocurrencies on the market and investors should remember only to invest what they can afford to lose.
The price of XRP depends on several factors, including supply and demand, fluctuation in dollar/Bitcoin rates, investors’ speculation and more. Attracting larger financial institutions may have an upward effect on its value and help XRP reach new heights more quickly; traders should keep an eye out for announcements by large financial institutions sharing plans to use its technology; this will have an immediate effect on its price; then traders can make their decision whether or not investing in this cryptocurrency.
It is a payment network
Ripple is the company behind XRP-USD and offers various payment solutions used by banks and financial institutions for cross-border payments, including xCurrent, xRapid and xVia. However, unlike Bitcoin these products don’t seek to replace existing payment networks but rather enhance them.
The company’s xRapid solution utilizes XRP to enable banks to transfer money globally without needing to pair transactions or hold foreign currencies (nostro accounts). This helps companies reduce costs by eliminating intermediaries and correspondent banking services.
Ripple, which owns the XRP cryptocurrency, recently unveiled a platform enabling central banks to issue digital currency using the XRP Ledger technology. Some major banks are currently testing this new technology as Ripple engages in an ongoing legal dispute with the Securities Exchange Commission over claims it violated securities laws by selling unregistered shares of XRP.
