- Altcoin making it the 3rd largest cryptocurrency in terms of market value
- XRP attracts many investors
Recently, Ripple Cryptocurrency XRP subsided a bit from the surge in November, but the prices are constantly trying to top the 60% mark giving rise to a conundrum for potential investors.
Buyers who bought in with lower prices are tempted to sell to earn profits before Christmas since the cryptocurrency reached the 70s not too long ago. Now, the question arises – is it safe to say that the long view more in order and XRP will rise, regaining momentum?
Ripple is Different
Being one of the cheapest cryptocurrencies, XRP attracts many investors as considering the cryptocurrency space. XRP provides prominent profits when the price climbs, as seen last month, and vice versa is also possible.
XRP doesn’t have to move much to make a great impact, whether it is negative or positive. For Example, A 25 cents rise will produce meaningful profit for someone who invested $1000. On the other side, 25 cents rise won’t matter to a Bitcoin owner. This terms XRP as much more accessible. And, it is eruptive in even small variations.
By the Numbers
Setting it apart from Bitcoin, XRP is combined into cryptocurrency group altcoin, making it the 3rd largest cryptocurrency in terms of market value.
Networking company Ripple’s digital currency is XRP, and they use blockchain technology to transfer various funds. RippleNet is proclaimed as a faster and reliable settlement system. The company claims America Express, PNC Bank, and Moneygram as their customers. In 2019, Ripple invested in Moneygram and was ready to sell some of its shares to capture profit.
In 2019 XRP’s price has fluctuated from 11 cents to 77 cents approximately. As compared to the more superior currencies, Bitcoin reached $22,000.14, and Ethereum is at $645, whereas XRP is just at 60 cents.
November 2020 has not been a good time for many things, but it was good for XRP. The year 2020 started with XRP being at 19 cents, and in November of the same year, the price was about a quarter. It ascended further and reached a two-year high at 73 cents on 24th November. Meanwhile, Bitcoin was about $7,000 at the beginning of the year.
The Bottom Line on Ripple and XRP
Both company and its cryptocurrency, Ripple, and XRP show potential to offer a reasonable course of action for investors looking to get into the “coin” space. It is true that XRP is cheaper than Bitcoin, but it doesn’t mean that it is not as eruptive as the original. Cryptocurrency is quite volatile by its nature. Even a small change in XRP can make a great impact.
David Moadel from InvestorPlace termed Ripple as quite popular with institutions and banks. He is of the view that cryptocurrency is used as a means of financial transactions, which is being more accepted by the institutions.
Now that XRP is revamped from the highs posted in November, it is the investors who have to guess whether to sell or buy.
Since the XRP value has been very fluctuating, analysts see 50 cents as the key trigger price for XRP to either begin a stake or add an investors’ holdings. But this is not sure as to how long the currency will remain at the same level as it has a nature of fluctuations on the blockchain.
Moadel, in his article, offers advice that an aware investor and an individual must always keep in mind that volatility is normal in the cryptocurrency market, and position sizes should be moderate.
To invest in cryptocurrency, an investor should be brave, not squeamish. For investors, who can go to any lengths, a small position of XRP would be accessible and will help diversify a portfolio.
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