Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
XRP is currently valued at $0.20 per coin. This XRP price is one of the lowest values in over two years.
XRP price crashes continue to have place. As the price has fallen to $0.20, it means that the coin has lost 95% of its highest all-time value. Currently, Bitcoin dominance is at an all-time high of nearly 70%. This has created a scenario where the XRP token has lost ground. This hasn’t however dampened the confidence of investors into XRP-related projects. Sources indicate that Ripple announced recently that it had been able to get about $200 million in investments this year. Ripple Labs also had said that this was the company’s greatest year ever.
There are many reasons why this hasn’t reflected in the price levels of the token. Firstly, the existence of escrow accounts is an issue. Ripple Labs uses these accounts to release tokens into the crypto space. It already creates way too much liquidity. This, of course, has a deflationary effect on XRP prices and as such any sharp swing such as the recent dip will affect the cryptocurrency token negatively. Secondly, we all know that the adoption of the cryptocurrency has risen exponentially. Most of the movements of the XRP token also occur on a transactional basis only. The zero-cost factor in terms of transaction costs for nodes on RippleNet also isn’t giving the node operators. There is no incentive to hold XRP tokens which in turn will buoy prices.
Several things are occurring on the technical side. They are considered below.
Trend Remains Bearish as XRP Price Crashes Further
The general XRP trend is expected to remain bearish. XRP price crashes may become regular. The lows will go lower and the high points as well. This has led to many believing that XRP may be going extinct. That’s, however, another story for another day. Even though we are at the lowest levels right now which is the $0.17- $0.2. It would also be too early to tell if the prices will just keep sliding or if a rebound to bearish support levels of $0.3 is possible. Cryptocurrency markets are known the wildly reverse in these sorts of situations.
For instance, during the October 2017 Bitcoin bubble, XRP is known to have risen to an all-time high of $3 before bottoming out alongside the rest of the crypto space. Similarly, before 2017, XRP prices are known to have reached an all-time high of around $0.9 indicating little or no activity. With the slight uptick in prices from 2016 to the bubble, XRP followed the same pathway that the other altcoins did. With a divergence after crypto winter this year following institutional interest and entry into the crypto space, a divergence of prices is being seen in the altcoins. So, in answer to the question if it’s a good time to buy XRP the answer would be “yes” as long as you’re ready to HODL which is exactly what the smartest investors are doing at the moment.