Some folks have called it the “bankers’ cryptocurrency,” while other know Ripple (CCC:XRP-USD) as a cheap way to make transactions and send money internationally. No matter how you view it, Ripple has come a long way since its inception.
Even just in the past few weeks, the XRP price has posted steady gains. It hasn’t been a smooth ride, however, as investors have been whipsawed in both directions multiple times.
Moreover, the skeptics have pointed to legal issues that could stand in the way of Ripple’s mainstream adoption.
On the other hand, the supporters might contend that resistance against groundbreaking new technologies is inevitable, and surmountable. Clearly there’s a lot to unpack here, so let’s dip our toes in and start with a little bit of technical analysis.
A Closer Look at the Ripple Price
Would you believe that Ripple was trading at just 20 cents a year ago? I’m going to make a not-so-bold prediction now and say that we’ll probably never see that price again.
Of course, I could be wrong about that. Still, the long-term trajectory is indisputably to the upside for XRP.
By April 1, Ripple had already climbed to 57 cents. That’s good progress, but the biggest gains (and the wildest ride) was yet to come.
April was quite a month, wasn’t it? Within 30 days’ time, the XRP price shot up to a 52-week high of $1.96, then fell to $1.03, and then recovered the $1.60 level.
Now Ripple is trading at $1.44 and the cryptocurrency markets seemed fairly calm. Ripple has gone as high as $3.40 in the past, which means that there may be room for further upside.
Heaven only knows what the price will be when you read this, so be sure to check frequently for updates.
Regulators vs. Innovators
It’s another phase in the ongoing tug-of-bar between governments and envelope pushers.
Apparently, the U.S. Securities and Exchange Commission (SEC) has taken issue with Ripple. InvestorPlace contributor Joel Baglole’s got the scoop:
The SEC filed charges against Ripple last December, alleging that Ripple co-founder Christian Larsen and company Chief Executive Officer Bradley Garlinghouse raised more than $1.3 billion through an unregistered, ongoing digital asset securities offering.
That’s a serious charge, and it’s never easy to fight the government. Nonetheless, the executives at Ripple aren’t just going to roll over.
“XRP is a currency and does not have to be registered as an investment contract,” they reportedly countered.
Furthermore, Ripple has entertained the idea of relocating to London, where regulators might be more accommodating.
On top of that, Ripple recently appointed Rosie Rios to its board of directors. She was named by President Barack Obama as 43rd treasurer of the U.S., so this may be Ripple’s way of implying that it’s willing to wage war against the SEC.
Ripple Not Crippled
Despite the regulatory issues, it’s still possible to buy XRP in the U.S.
InvestorPlace contributor William White even provided a handy guide on where and how U.S. residents can purchase Ripple. So, be sure to check that out.
In any case, there’s reason to believe that the crypto community isn’t fazed by the SEC’s posturing.
Reportedly, despite the SEC’s lawsuit, sales of XRP nearly doubled during the first quarter of 2021.
To be more precise, Ripple sales jumped to $150 million in 2021’s first quarter, versus $76 million during the previous quarter, marking a 97% increase.
Was this increase entirely due to a “crypto bubble”? I doubt it. Most likely, Ripple’s On-Demand Liquidity (ODL) service contributed to the surge in buying activity.
According to Ripple, the ODL service eliminates the need for pre-funding and enables instant global payments.
The ability to settle cross-border payments without pre-funding marks a huge advantage for XRP.
Perhaps, the U.S. government couldn’t care less about that. And to that, I’d say faithful Ripple investors couldn’t care less what the government thinks.
The Bottom Line
Often, regulatory problems come and go while innovations persist.
Years from now, Ripple could be part of the mainstream financial system. And if so, then today you can take part in a historic movement, and one heck of an investment opportunity.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.