Ripple price news: could the rally resume?
14:42, 9 June 2020
This year has been an emotional rollercoaster for XRP so far. Ever since the flagship token of Ripple lost its title of the third-largest cryptocurrency to Tether, some investors turned sour for the project, doubting its future potential.
The coin has been pondering under its long-term resistance of $0.21 over the past few days, right after peaking at $0.214 on 2 June, forcing many to question: “Is Ripple a good investment in June, or is it at all?”
In this article, we try to answer this question by taking a look at the latest developments in Ripple that will likely drive the value of its digital coin going forward and checking out what the XRP forecast for summer 2020 looks like.
Against all odds: Ripple’s network continues to grow
While the performance of XRP has been rather flat lately, Ripple is persistently registering numerous new partnerships, with the coin’s transaction volume continuously rising worldwide.
According to the latest cryptocurrency news, Ripple has been working towards boosting its global presence and as previously reported, the business is even looking forward to dabbling in the lending industry. Speculations that Ripple was considering the use of XRP for loans started earlier in May. And while this has yet to happen, this potential use case of the coin could boost its value tremendously.
Additionally, a growing number of companies have now started to utilise Ripple and its ODL payment platform that facilitates cross-border transactions using the cryptocurrency. For instance, on the first days of summer, Ripple’s ODL in Australia recorded a new all-time high for the liquidity index of XRP on various corridors.
Based on the data provided by the Liquidity Index Bot, the Twitter bot that tracks the liquidity index of XRP on various corridors, the liquidity index for the BTC Markets exchange for the XRP/AUD pair soared up to 16.089 million on 4 June.
Caroline Bowler, the CEO of BTC Markets, commented: “What we’re seeing with ODL, just to give you this as context, I think we’re averaging about a 5 per cent week-over-week growth since January in terms of volume coming through our exchange on XRP.”
To explain the latest surge in enterprise adoption of the Ripple’s blockchain and its native cryptocurrency in Australia, she said: “Most people recognise the problems with cross-border payments especially in Australia where businesses often need to pay suppliers based outside the country. Using XRP to cut transaction fees and make same-day payments brings real benefits and fixes the problems of the existing system. XRP is a bridge between traditional financial institutions and the new world of fintech.”
Moreover, it is not only the Australian corridor that has seen a boost in liquidity. The XRP/MXN pair in the Mexico corridor on the country’s largest crypto exchange Bitso also witnessed a surge to 37.356 million on 1 June.
The payment corridor between Europe and the US is also now on its way to reaching a new record high. In the last week of spring, David Schwartz, Ripple CTO, confirmed that the transaction volume in this corridor had risen by over $1.5 million.
Boosting the upbeat mood within the crypto community, a senior Ripple executive recently said that around 350 financial institutions are now using Ripple’s payments technology. Navin Gupta, the project’s managing director for the South Asia and MENA region, revealed the new total on 1 June in an interview with Nishith Desai Associates, a research-based international law firm.
The company has set a goal of achieving a customer base of 400 by the end of this year.
Moreover, Ripple CEO Brad Garlinghouse hinted that Ripple is considering going public at some point in 2020. This move could be a huge success, allowing the business to generate more attention in the mainstream media and use the raised capital to grow exponentially.
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Ripple price news: the lull before the storm?
The price of XRP has been stuck below the $0.22 level for a long time. However, some traction to the upside was recorded at the beginning of June.
Earlier this month, Bloomberg reported that Western Union (WU) made an offer to acquire MoneyGram (MGI). However, no agreement has been reached yet.
Due to the coronavirus outbreak, the money transfer company has faced a plethora of challenges recently, with MoneyGram reaching a debt of $878 million and its walk-in business struggling dramatically due to the worldwide lockdowns. For that, once Western Union made the acquisition offer, MoneyGram stock surged by nearly 50 per cent.
Since the end of November 2019, Ripple has been one of the MoneyGram’s stockholders, owning 9.95 per cent of the business. Once the news of the possible takeover was first reported, the XRP price gained more than 4 per cent. On 2 June, the XRP/USD rate hit a 3-week high above $0.214, however. However, the buyers could not sustain the positive momentum, with the price plunging back to its regular level of $0.20.
In case the MoneyGram acquisition talks gain more traction, it is likely that new investors will jump in to buy XRP/USD, in hopes to capitalise on the impending bullish reaction in the pair.
At the time of writing, 8 June, XRP changed hands at $0.202 per coin.
Short-term outlook: is Ripple worth investing in now?
According to WalletInvestor.com, an online forecasting service, XRP is a “bad, high-risk 1-year investment” option, expected to trade at $0.017 in June 2021. Meanwhile, its Ripple XRP prediction for the short term also looks anything but optimistic.
While the cryptocurrency is not expected to fluctuate a lot in the next few days, it is forecasted to drop as low as $0.0325 by the end of this summer.
A more bullish scenario is suggested by Longforecast.com, another popular forecasting website. Upon its calculations, the XRP price is set to end August 2020 trading at $0.19.
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