Ripple Cryptocurrency XRP Positions Itself for Bullish Rally
All eyes have been on XRP in recent weeks, the cryptocurrency used by the Ripple payment network. Like other coins, XRP has seen some growth thanks to Xi Jinping’s public comments supporting blockchain development in China. But its pricing continues to hover around the $0.30 mark. However, some analysts are confident XRP will rally due to recent growth and high-profile partnerships by its parent company.
Last week, XRP saw an 80% increase in money transferred over its network. Currently, it is in a similar position to Ethereum and is now the third-largest cryptocurrency. Ripple, its parent company, has formed many high-profile partnerships with various financial institutions in the past year. Over the summer, Ripple partnered with Moneygram, Ria, and Justin Bieber’s manager Scooter Braun.
Moneygram and Ria, both money transfer services, were wise and strategic partnerships. Both services now rely on Ripple’s remittance network for its instant payments system. Also, Walmart has recently announced plans for a global money-transfer service, called Walmart2World. The company revealed that the service will be powered by Moneygram and Ria.
Walmart2World is bound to see explosive growth as it expands across Walmart’s 4,700 stores. The service will be entirely powered by Ripple and its partners, which is great news for XRP and prospects of long-term growth.
Through its Xpring Initiative, Ripple committed $500 million to various ventures to expand the use of XRP. One of these companies is Ithaca Holdings, which is led by Justin Bieber’s manager Scooter Braun. This earned Ripple an extremely lucrative shout-out by the internationally famous pop star. Bieber posted a video to Instagram featuring the text “Runs on Ripple.” Being broadcasted to 121 million followers this helped place XRP at the forefront of mainstream attention.
But are these developments enough to push the coin over its $0.30 hurdle?
Crypto analyst, @CryptoWeston, has been very confident in his “ultra-bullish” outlook. On Halloween, he tweeted, “For the last year, It’s been fairly stagnant and been in the accumulation phase. With so much news and partnerships, this thing is ready to launch,” predicting a breakthrough at the beginning of 2020.
Even so, XRP is still facing down some serious issues that could foil long-term growth. The company is still battling a major securities lawsuit that could result in damaging ramifications for XRP. The basis for the suit has to do with the nature of XRP, which cannot be mined like other cryptocurrencies. Instead, Ripple releases XRP for sale every month. The plaintiff claims that this is an on-going securities sale and the company should be subject to enforcement by U.S. regulators. This may be among the reasons Ripple opened an office in Washington D.C. to help shape the regulatory future of cryptocurrencies. Depending on the outcome, this lawsuit may spook buyers and prevent XRP from making any significant gains. Not only that, many other crypto analysts are becoming highly critical of the coin. A petition on change.org has demanded that Ripple stop “dumping” XRP on the markets while blaming the coin’s price decline on this monthly sale.
The only thing we can say for certain is that XRP is a cryptocurrency worth paying attention to in the next few months. XRP does have its weaknesses, but a bullish rally is possible thanks to its many lucrative partnerships.