Is it worthwhile to buy XRP now? Despite the unprecedented market slump that we are currently experiencing, its hard to find a coin that has retained its value. However, expect for stablecoins, Ripple has been an exception. The currency has managed to stay in its range at a time when almost all other coins have lost a substantial amount of their value. Below we are going to look at two reasons why you should buy XRP.
You can buy XRP because it has proven its resilient
The first reason you can consider to buy XRP is the fact that the last few days have seen XRP prove its resilience. The coin managed to rally in the face of a market meltdown and surpass Ethereum as the second biggest crypto coin by market cap. Even after a slight correction, the currency still managed to remain above its trend line when the other coins tore through their trend lines to complete a full correction.
Here is a Tradingview chart by fockstrot
The daily chart for XRP/USD indicates that XRP has now found strong support at the $0.457 level. It’s a level the price has managed to hold during a recent retest, and it’s highly unlikely to fall below it. Also, the daily RSI has cooled down without negatively impacting the price of XRP.
Actually, as the market recovers, Ripple could rally again, so if one is to buy XRP, they stand to gain big.
However, the EMA alignment for XRP seems to have turned bearish and its expected to fall further below. But XRP appears to be holding strongly above its trendline, and it doesn’t look like it will be dropping below its support.
Now the five days EMA has turned into a strong resistance that XRP looks like won’t be breaking soon. Also, the daily volume is showing signs of recovering, however, most of it has been on the sell side. Its visible that those who buy XRP or have already bought XRP must be wishing for some bullish volume to return to the market.
Interestingly, as much as XRP has managed to stay atop its trendline against the USD, things are entirely different when it comes to BTC. The daily chart for XRP/BTC indicates that XRP is yet to break its downtrend against BTC. It managed to beat the downtrend in the past few days briefly, but it was soon pulled back in.
Looking at the RSI for XRP/BTC, the coin seems highly unlikely to break the downtrend against BTC anytime soon. Its highly like the price of XRP/BTC will have to complete a wave down before it attempts to retest the resistance once again.
It’s important to note that XRP has already tried to break this downtrend before September of this year. There was a big spike in XRP/BTC that was halted at the downtrend resistance and pushed back into the descending channel.
However, even though there may be a short-term pullback against BTC for XRP in the cards, its vital to mention that the coin has already been a winner from an investment standpoint. It’s a strong reason why one should consider to buy XRP. For the investors that bought after the initial correction a few months ago, they are now starting to see the green.
Here is a Tradingview chart by CryptocurrencyWatchGroup
For the XRP investors that were hodling, they were down 80 percent on their investment since they bought near the top. But, they are doing better than most crypto hodlers since XRP has recovered significantly. Many other crypto coins have tested new lows for the year.
It’s Bitcoin 2.0 according to Cory Johnson
The second reason you can consider to buy XRP is that Cory Johnson is the Chief Market Strategist at Ripple. In a recent interview, he made a strong case of why investors should buy XRP. He called the second largest crypto coin Bitcoin 2.0 since it addresses the issues that seem to limit BTC today.
BTC’s scalability issues have persisted. The debate from August 2017 about scaling the protocol has become relevant again with the only solution being Lightning Network, and it won’t be available until 2020. Now, this creates an unusual situation for the most used crypto coin as its operating at above 90 percent capacity with thousands of unconfirmed transactions.
It’s for this reason; Johnson said the creators of Ripple foresaw these problems and decided to use a different idea of what consensus is. This allows XRP to handle 1500 to 2000 transactions per second.
“The guys who made XRP, they looked at the whitepaper that Satoshi wrote about Bitcoin and said this is amazing. This could be reasonable at scale but what would the problems be. There might be problems about needing total openness in every transaction.”
It’s not hard to see why financial institutions, banks, and businesses would not be willing to have their transactions “out there for people to see who they are,” Adding:
`“They want some sort of privacy, but they want some of the protections that an open network can have, and XRP provides that.”
Remember to do your due diligence before you buy xrp or even investing in any cryptocurrency.
What’s your take on these two reasons why crypto investors should buy XRP? Would you buy XRP? Share your thoughts in the comment section below.