January 4th of 2018 was an unfortunate date to buy XRP.
If that was the moment of your investment, you got your hands on XRP for $3.75 each coin. Now, a quarter later, each coin is worth .56 cents. Anyone who has been holding since that time will face a crisis of confidence about their investment. Buying at an all-time-high is risky, but it happens all the time.
However, with the price approaching .50 cents a coin, many of the objections people have about Ripple should begin to dissipate. The currency is fundamentally stable in an environment where competitors can’t make the same claims. Ripple, the company behind the project, is making significant progress in solving real world, scalable problems. To most people’s way of thinking, that’s precisely the type of project that is necessary to help expand the role of cryptocurrencies for people and businesses.
When the price of XRP was at its all-time high critics said that the market cap was way too high. As the price nears .50 cents a coin, that complaint is no longer valid. The drop in price also seems a bit drastic if you take into account the main reasons for the current market damage.
Much of the bad news for cryptocurrencies lately is due to fears related to regulatory and compliance in the Cryptocurrency trading markets. Those are the areas where Ripple and XRP stand out from the crowd. The company and the cryptocurrency have compliance in their DNA because Ripple targets large money transfer clients. Many enterprises have high degrees of interest in using cryptocurrency to save money. However, with regulatory obligations at an all-time high, they are nervous. No manager wants to implement new technology to discover that there are significant hurdles to clear. Ripple’s design alleviates many of these compliance fears in a way that alternatives do not.
XRP Has Its Advantages
Not only that, it’s a fast coin with low transaction fees in a world where those qualities are in demand. Since the network can handle 1,500 transactions per second at a time of 3.3 seconds each, the technical framework meets the requirements of money transferring in the real world. Those specs and low fees are likely to make XRP desirable to their target clients. Multiple companies are testing the protocol, which is a definite sign of brighter days ahead for the cryptocurrency.
XRP can’t escape the strength or weakness of the cryptocurrency sector any more than any other coin. Almost all projects are trending down hard as the fear, uncertainty, and doubt mount. These are the times that test the resolve of investors. Those who are secure enough in their convictions to purchase more of a promising project when at lowered price point stand to make higher returns when it rebounds. For many, this new lower price could represent the time to get in on XRP after a significant pullback.
XRP faces one hurdle with cryptocurrency investors. There are many new people in the market and patience is in short supply. Not everyone is willing to put money into a project and then wait a few years to realize a gain. However, outside of day trading and pump and dumps, that’s the primary way anyone will make money purchasing a crypto coin, especially one like XRP that requires enterprise adoption in the strictly regulated financial sector. Their clients take time when making decisions because billions of dollars are at stake. As more people jump on board, the take off for the coin’s usage and the price will be rapid. That’s the gamble that investors are taking now, and thanks to the massive downtrends, the risk is not as steep as it was in January.
Now that XRP is .56 cents instead of nearly four dollars, it may represent a second chance for long-term holders to accumulate large stakes at a steep discount. XRP still has a strong fundamental story to tell, and there’s plenty of room for growth in the overall crypto markets. If it tests the .25 cent range, many market participants might return for a second tremendous bull run. It’s worth keeping an eye out for the price movements of Ripple in the next few weeks if you plan on acquiring more. If history repeats itself, a bet on XRP could offer a tremendous yield.