Ripple (XRP) was trading sideways since close to two months and its growth had been stunted between $0.99 to $1.19. The SEC Vs Ripple legal battle is still ongoing with mixed reactions coming out each week.
Despite trading sideways since two months, its price has not dipped below the $1 and hovered around the area for weeks. Since a week, XRP is trading in green, giving hopes to investors that it can pull above its weight.
Nonetheless, its price movement today isn’t significant but considering a +10% rise after weeks plays a phycological trick. The sudden rise gives hopes that its bull run has started but within days falls to its previous trading price.
As soon as Ripple turned to green in double digits today, its trading volume shot up +55% in 24 hours. Its market cap also saw an improvement as it rose +8.8% in the day.
Ripple’s Growth A Bull Trap?
Considering its long legal battle with SEC is still in the courts with no definitive outcome, trading Ripple is not everyone’s cup of tea. Also, a sudden spike like today out of nowhere screams of a bull trap and XRP could fall back to its previous numbers.
For the uninitiated, a bull trap refers to a false signal where the value of a cryptocurrency displays signs of recovery, but in reality it isn’t. A bull trap means the crypto is actually set to decline further and its spike is only a smokescreen.
However, coming to the positive side, many believe that Ripple is at present at its lowest. An investment now during its low will bring good returns after the coin wins the legal battle with the SEC. Many financial analysts on YouTube claim that XRP will go parabolic after the SEC case comes to an end.
In conclusion, only those who are looking to invest for the long term are advised to trade Ripple. Investors who want quick gains by jumping from one coin to the other are advised to stay away from XRP.
The coin can test the patience of an investor and those who are in it for the short term will find it hard to make gains. Also, coming to its current price, XRP breached the $1.20 mark and could touch up until $1.25.
Ripple at the time of publishing was trading at $1.20 and is up +8.57% in the days trade.
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