Trading over the weekend saw XRP dip below $0.30 for the first time in 2018, and at its lowest point since it spiked in mid-December 2017. So, is XRP in serious trouble or not?
Saturday saw Ripple (XRP – the crypto), hit a new low-point, price-wise, for 2018 as it dipped below 30c. It ended another week of value woes for a coin that was, during the highs of early January briefly worth eleven-times that amount.
That calamitous decline is, we’ll grant you, reflective of a market that has been struggling for the vast majority of 2018. However, the performance of sector-leader, and general bell weather for the crypto market, Bitcoin, has been largely flat – actually, slightly up – over the last month (after a notable uptick in price during early August). In contrast, XRP has now lost over a quarter of its value in that time – having been worth as much as $0.51 in that period.
As you can see, for much of mid-late July, XRP’s price oscillated around the $0.45-mark, but August has seen an almost incessant decline to Saturday’s low-point. The major drop coming on August 7th as the rest of the market suffered alongside it.
Much of the problem with XRP during 2018 in that time has been down to its legal situation, which has seen it the subject of an ongoing discussion – in and out of the US courts – regarding its relationship with Ripple, the company which created it.
We’ve explained many times, how this relationship has caused problems – and consistently ‘joked’ about ‘Ripple (the company)’ and ‘Ripple (XRP – the crypto)’, but one more time won’t hurt. Essentially, Ripple (the company) has recused itself from controlling Ripple (the crypto), while retaining a massive cache of the pre-mined currency which it distributes for payment and projects as it sees fit. This is not enough, in the eyes of some, to avoid accusations of manipulation.
This questionable arrangement has seen it in court recently, accused by investors of what amounts to securities fraud. However, over the weekend an important milestone in that case was reached, when it was decided that the case would need to be heard in Federal court – as per Ripple’s request – rather than California state courts.
While the decision was a victory for Ripple, it does not amount to the legal action being ‘thrown out’ as some outlets have reported. It simply means that the trial escalates to a much bigger stage. There it will sit alongside two other live cases that Ripple are facing. However, it does mean that any decision at a Federal level would become precedent across the US. Through it’s actions in pushing for Federal courts, it seems obvious the crypto giant is confident of success.
“Ripple wanted this in federal court and the plaintiff wanted it to stay in California. Ripple’s attorneys know what they are doing. If Ripple wins in federal court then this becomes federal law. This is a big advantage for Ripple’s side.”
— buckor (@bigbuckor) August 12, 2018
The news is not quite the 100% positive outcome some would like to cast it as – Ripple still has multiple Federal court cases to win, after all. It is, though, another piece of not-bad news for the the company, and the crypto.
It comes after news broke last week that XRP is to be listed on Seattle-based exchange, Bittrex, which was a big thumbs up from a US-based concern – after a long-recorded history of exchanges avoiding Ripple due to regulatory concerns.
Then there was also this, from Weiss ratings – suggesting that XRP should serve as a base currency on a crypto exchanges, something that would significantly increase use.
We think that the #XRP is the fastest digital asset to transfer funds between exchanges. It only makes sense for #Binance to use it as the base #currency – why should one have to go through an intermediary currency to trade? #crypto #btc #altcoins
— Weiss Ratings (@WeissRatings) 10 August 2018
It essentially seems like Ripple’s drive to differentiate itself from XRP is beginning to work – as it must. However, while Ripple (the company)’s success seems assured, with wider adoption of its xCurrent facility and other services, the success of XRP is far from certain – and until the outstanding legal issues are solved, that will likely remain the case.
These new lows then, are indicative of two things – both a market struggling against a strong headwind right now, and a cryptocurrency that has had a tougher year than most. Many, though, would argue that the latter is a woe XRP’s parent has bought upon it.