Determining whether you should be concerned about the long-term price of XRP

The endless Ripple SEC lawsuit may have a potential deadline. In a filing related to the pending class action dated February 23, 2022, Ripple has reportedly agreed to a new date of November 18, 2022. Rather, the date, as stated in the report, was August 26, 2022. Sadly, that is not everything .

On top of that news, there are reports that both XRP bulls and SEC insiders expect Ripple to emerge victorious. Such speculation was further fueled after the SEC reportedly DELETED the case/lawsuit from its website.

Who Needs XRP?

Despite Ripple gaining a lot of traction lately, for many, XRP has failed to reciprocate this momentum.

XRP and Ripple share a degree of interdependence. Some even believe that Ripple’s valuation is intrinsically linked to XRP’s market price. Still a recent one tweet storm comprehensively on why the altcoin’s price action is the way it is.

A pseudonymous Twitter user, Wrathof Kahnemanmarked the reasons behind XRP’s slow price action in a series of tweets. The analyst believed that demand for XRP is not (yet) strong enough. Ripple could instead obtain and integrate the liquidity cheaply.

Ripple’s On-Demand Liquidity (ODL) allows customers to instantly move money around the world at any time – even on weekends and holidays. In fact, ODL transactions in Q3 2021 responsible for 25% of the total dollar volume across the network. However,

“ODL doesn’t push the price up that much hope, as every buy side has a sell side. (ignore LOC). But it’s powerful in the long run to get XRP moving in larger volumes and passes, increasing utility and desirability.”

XRP’s growth, the analyst added, is considered fit for the long term. It captures as much global value as possible because it remains an embedded part of the global financial system. Ergo, the price of XRP, despite consolidating just below $1, is not a concern, he claimed.

In the long run, he said, XRP would increase sharply as global transactions continue to accelerate.

Needless to say, there isn’t much incentive for retail XRP traders right now. It is also understandable that there are many prejudices against it. In the short term, however, the following may be good signs to watch out for:

This is what traders should really look into

XRP registered a significant increase in ‘institutional capital flows’ ($0.9 million) due to recent geopolitical tensions. In fact, this was the first time since October that it recorded a positive monthly return.

The price of XRP grew 20.2% to $0.75 in February, reaching a fully diluted market cap of $64.1 billion by the end of the month. Monthly USD Volumes Rose up 32.6% to $2.43 billion, while 30-day volatility nearly doubled, rising from 65.2% to 119%. On-chain activity declined slightly as monthly transactions fell 1.28% to $50.9 million.

In addition, in February, XRP remained the blockchain with the highest transaction volume, according to CryptoCompare’s report. It recorded approximately $50.9 million transactions during the month.

Source: CryptoCompare

The timing of these findings is interesting. Especially since XRP whales have moved large amounts of the cryptocurrency between private wallets. This amounted to about 78 million XRP, worth more than $55 million.

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