The value of the combined cryptocurrency market has surged to over $1 trillion as prices rise across the board. The surge over one trillion comes as smaller cryptocurrencies, including ethereum, Ripple‘s XRP, cardano and stellar, all make significant gains.
About Ripple (XRP)
RippleX makes it easy for entrepreneurs and developers to remove the pain and friction that comes with integrating blockchain technologies into their applications. Through tools, services and programs built on the XRP Ledger, RippleX enables developers and the users of theirs to send and receive payments across any currency, geography and network.
The price tag of Ripple’s XRP has been on a roller coaster over the last month after a late November surge was wiped out by a lawsuit brought by the U.S. Security and Exchange Commission against Ripple, casting doubt over XRP’s future.
Ripple In the News
The current Ripple news aggregators are overflowing with stories as of late. Ripple is entwined with government and central banks central banks, global economics, stock markets, international trade and commodity prices , government spending, and inflation.
One of the things that affect the price of XRP is the overall sentiment of the community towards it. An important aspect of cryptocurrency trading is actually determining the direction of the current trend and how investors are feeling about it. Sentiment refers to the overall attitude of the men and women toward something which can either bring bad or good news. And with cryptos, sentiment is able to range from wildly optimistic to very pessimistic.
Ripple has publicly decried the SEC charges and has an initial hearing scheduled for later next month.
Longer term, the market sentiment towards Ripple may be bearish as investors start to be weary of its legal prospects. It might then be predicted that short sellers will emerge with the short positions of theirs, driving up the spread even further. The market sentiment is still bullish at the prices and this point should begin to reverse. This is called the “flip”.
But, some cryptocurrencies don’t have strong fundamentals and therefore need further support to survive. Even some national currencies including those from emerging economies like the Peru and Mexico, which are experiencing weak demand from wealthy investors. The governments in these countries are trying to support the currencies by creating exchanges or even futures markets to provide liquidity and allow for secure trading.
While the bull market in cryptocurrencies will go on to exist, Ripple market participants must be very careful to look beyond the short term price predictions and consider the long term potential of the currencies involved.