The price of Ripple has become the source of much debate in recent weeks given its relatively stable position in the market. With day traders struggling to find little value in XRP due to its low volatility rating, many are hoping that a big announcement will push it above the $0.50 mark and initiate more swings. However, what traders often overlook when they focus solely on the Ripple price charts is its real-world value.
Ripple’s Hybrid Status Makes It a Unique Proposition
Although the Ripple price in dollars might be fairly static at the moment, there are those that would argue this is a positive thing. Boom and bust cycles are common with all financial markets. However, for emerging technologies, too many busts can lead to the death of a product. When it comes to Ripple, the company is clearly in it for the long haul. Evidence of this is can be seen in the team’s push for regulatory approval. As the company’s chief marketing strategist Cory Johnson told Fox News recently, investors need protection.
“One person’s regulation is another person’s protection. I believe it’s really important for investors to be protected. We’ve seen what happens when there aren’t investor protections,” Johnson said.
Unlike other systems that investors who buy Ethereum (ETH) or even Bitcoin (BTC) are largely familiar with, Ripple uses a consensus protocol and the developers have a certain amount of control over the network. This has led to debates as to whether Ripple is a decentralized blockchain and cryptocurrency at all. However, outside of these debates, banks and businesses appear to like what Ripple has to offer. Indeed, the recent xRapid trials have shown the cross-border payments between banks can be greatly enhanced using XRP. In fact, thanks to its position as a hybrid product that’s building a bridge between crypto technology and traditional payment systems, Ripple wants to see regulation in all its forms.
Focus on the Long-Term Price of Ripple
By receiving the approval of established financial institutions like SEC, Ripple becomes a more attractive proposition for similarly regulated products. This, in turn, would lead to positive Ripple price movements in the coming years. In essence, by pushing for regulation, Ripple’s team is also pushing for stability for the price of Ripple. Proving that it can provide a sustainable, reliable product is crucial for the long-term success of the product. The upshot of this is that the price movements in the short term can slow down.
For investors monitoring the XRP price live, that may not provide much potential in the intraday markets. However, by stepping back and taking a holistic perspective on the situation, this may be exactly what Ripple needs. Yes, the price of XRP is compressing and its volatility is low, but that could be a good thing. In other words, all of this could make it a bad time to buy Ripple if you’re looking for a quick turnaround but great news if you’re looking to hold for the next 12 months.