Ripple’s price has been in a tight range in the past few days as investors assess the market conditions. XRP is trading at $0.6080, which is about 70% below the highest level in 2021. It is also close to its lowest level since July last year.
Ripple ecosystem growth
Ripple is a blockchain project that helps companies around the world move money faster and at a lower cost. It uses RippleNet platform which offers on-demand liquidity (ODL) for these companies. XRP is the bridge that makes the RippleNet work well.
In the past few years, the platform’s ecosystem has been on strong growth even as the developers have faced numerous challenges. Some of the companies that are actively using Ripple are Santander, Ria Money Transfer, Tranglo, Rabobank, and CIM Bank among others.
These companies benefit since transactions handled in the RippleNet are cost-effective and significantly faster than traditional ones.
This week, the XRP price reacted mildly to the new partnership between Modulr and Ripple. Modulr, which runs Trust Payments, will use Ripple’s services to boost its service offerings in Europe.
Other companies that recently entered Ripple’s ecosystem are Tranglo and SBI, one of the biggest firms in Japan.
These partnerships have helped the blockchain company to see more transaction growth in its network. In 2021 alone, it had a payment volume run rate of over $10 billion.
Another important piece of news is that Ripple Labs recently boosted its total valuation to $15 billion as the company bought back its shares. The CEO also announced that the firm had $1 billion in cash and equivalents.
While Ripple Labs has made strong progress, the XRP price has continued being under pressure in the past few months. It has tumbled from its highest level in 2021, bringing its market cap to about $29 billion. At its peak, XRP was valued at over $50 billion.
The biggest concern among investors is the ongoing Securities and Exchange Commission (SEC) lawsuit. This suit, which kicked off in 2020, alleges that Ripple Labs and its executives raised $1.4 billion in violation to investor-protection rules.
On its part, Ripple has argued that XRP is a cryptocurrency just like BTC or ETH. It also pointed out that XRP is a tool used to make payments, meaning that it is not an investment.
In a report by the Wall Street Journal this week, the paper wrote that a win by the SEC will boost its case to regulate the industry. A loss by the SEC, on the other hand, will be a good thing for Ripple since it will give it the freedom to make deals with other companies.
Another challenge for XRP prices is Central banks. In the past few weeks, more central banks have hinted that they will start tightening market conditions.
On Thursday, the Bank of England (BOE) raised rates for the second straight time while the ECB chair hinted that she will likely hike this year. In the US, the Fed has hinted that it will hike rates three times this year. Risky assets like cryptocurrencies do well in a period of low interest rates.
Ripple price prediction
The XRP price has been in a major bearish trend in the past few months. Along the way, the coin’s price has moved slightly above the 78.6% Fibonacci retracement level. It remains below the 25-day and 50-day moving averages. It has formed a bearish flag pattern, which is usually a sign that the bearish trend will continue. If this happens, the next level to watch will be at $0.50.