Ripple price may be stagnant, trending in a tight trade range with caps at $0.17 and $0.20, respectively. Nonetheless, far and beyond the depressing price action are interesting fundamentals.
Founded to ease remittance, the multi-billion for-profit company recently announced PayID.
It is a coalition of over 40 companies aiming to ease the sending and reception of funds, mimicking how email works. Interestingly, the PayID trademark is owned by Ripple Labs, the official issuer of the XRP coin.
Ripple Labs, not to be confused with Ripple Inc.—the majority owner of XRP coins, maintains the XRPL ledger and is independent of Brad Garlinghouse-led Ripple Inc.
Ripple Labs owns the PayID trademark
With PayID, the main beneficiary is the end-user and those registered with partnering firms. Estimates place them at over 100 million.
Since the solution integrates both fiat and cryptocurrencies, and Ripple Labs happens to the owner of the PayID trademark, it is easy to conclude that XRP and On-Demand Liquidity (ODL) may end up being a big feature.
— XRProbiC (@ProbiC_) June 23, 2020
Still, there are legal issues to be addressed as far as the coin is concerned. The former U.S. CFTC chair, Christopher Giancarlo argues that the coin is not a security. However, he has been brushed by some who counters his views claiming he is in Ripple’s payroll.
SBI Ripple Asia to create a crypto fund
SBI Ripple Asia said this fund embodies what their resources represent, revealing confidence in XRP—an asset with low correlation with the stock market but one of the poor performers in Q1 2020.
Ripple price analysis
In the daily chart, candlestick arrangement suggests weakness. Although most traders are optimistic about price recovery, the failure of bulls to prevent further price degradation below 17 cents could spark another wave of sell pressure.
Technically, the selling momentum is strong. Bear candlesticks are banding along the lower BB as the band diverges away from the 20-day moving average. Furthermore, the Ripple price continues to oscillate inside May 10 bear candlestick. From an Effort versus Result analysis, this is bearish.
Any strong break below 17 cents at the back of high trading volumes could see the XRP price slide to 11 cents. On the reverse side, a rally above 20 cents could see the Ripple price floating back to 25 cents.
Disclaimer: This is not investment advice. Opinions expressed here are those of the author and not the view of the publication.