The cryptocurrency market is much more volatile than other financial markets. There are many reliable assets, which have given excellent returns over the years. Everyone knows Bitcoin as the market leader and Ethereum as the second largest cryptocurrency. Moreover, according to CMC, Ripple (XRP) is also ranked seventh among the top ten cryptocurrencies, which could offer incredible returns in the future. Now the question arises, Is Ripple (XRP) a good investment?
What is XRP and how does it work?
XRP is a digital currency that is the native token of the XRP Ledger, helping to facilitate cross-border payments under conditions. The best things about this asset, its open-source platform, using low-cost permissionless and decentralized technology. The XRP coin was launched in 2012 when people became aware of the cryptocurrency. The XRP/XRP ledger was founded by David Schwartz, Jed McCaleb and Arthur Brito.
XRP is a scalable and reliable blockchain with decentralization. It leads a global community of developers because it is fast, power efficient, and reliable. So far, only 48% of the coins are in circulation in the crypto market, among which the maximum supply of XRP is 100 billion USD.
Over the past year of 2021, XRP coin had an excellent bullish gain where buyers were celebrating gains of over 750% from the 2021 lows to the 52-week high of $1.96. However, over the past few months, the entire crypto market has seen a huge downturn, and most cryptocurrencies have seen recent lows. But now the circumstances have changed, as a result, the crypto market is gearing up to launch another bull run.
Ok, so would you buy XRP for the long term?
As we all know, Bitcoin was created to replace the traditional banking system. Satoshi therefore created a decentralized network to replace banks and financial institutions in the future. Additionally, XRP has a different approach to serve as a mixed structure between the two industries.
As the crypto market is slowly moving towards where XRP is used as a bridge currency during transactions. Based on its unique trading future and speed, many new investors consider it a profitable investment at the time.
Let’s take a look at the price history of XRP
The XRP coin has a bigger bull run in 2021, moreover, now the crypto is seeing its 18-month lows. Midway through the downtrend, sellers sold the rebounding asset, hence buyers came to witness the latest 52-week low of $0.2906.
Is it possible for XRP buyers to hit an all-time high again in 2022?
Now buyers are hoarding the XRP crypto to drive the price up. This action may occur if the buyers manage the price of the asset above the previous all-time high of $0.60. At press time, XPR is trading at $0.356 against USDT.
On a longer time window, the price action of XRP forms a round bottom, where traditional indicators like the RSI and MACD will reflect the bullish bias for the given crypto.
Although XRP is trading lower these days, a bullish rally is expected from traditional indicators. Meanwhile, XRP could be a favorable investment in 2022, if buyers have the patience to keep it in their wallets.
The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only. They do not provide financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.