After briefly holding the second spot in the ranking of the most valuable cryptocurrencies, Ripple did not enjoy a particularly strong third quarter in 2019. If anything, the interesting and divisive token developed by Ripple Labs delivered a 3Q performance that was on par with its competitors, which means that it was lackluster at best. Trading under the symbol XRP, Ripple finished the second quarter near $0.40, a level that traders believed would increase to $0.50 by September, but that did not happen.
Optimistic traders believed that XRP would be on track to find support around $1.00 at some point in 2019, but Q3 ended up erasing many of those hopes as this financially-focused cryptocurrency slid all the way down to $0.27. By the middle of September, XRP was barely worth a quarter, a price that triggered a slight recovery towards $0.32, but that modest rally fizzled out within a few days. As of early November, technical analysis did not suggest that XRP/USD would be able to climb out of its rut to move beyond $0.30, but the most bullish forecasts call for a return to $0.50 as the market inches towards the holidays.
The Future of Ripple
The prospect of a Santa Claus rally boosting Ripple towards the mythical $1.00 level seems unlikely, particularly because of the nature of this token and its sensibility to fundamental news updates. It is important to note that this token stands out from the rest because of various factors, mainly its centralized nature and its lack of mining options, but something that cannot be ignored is the strength of Ripple's business development team. The reason XRP is so responsive to fundamentals is because this is a digital currency with a clear mission, which is to become a leader in the financial settlements sector.
Cryptocurrency traders who follow Ripple have gotten used to promising news headlines; we are talking about a token that has been tested by Banco Santander, American Express, and even Western Union. Whereas Bitcoin circulation is mostly concentrated on massive trading volume, XRP actually completes remittances and wire transfers, but executives at Ripple Labs have yet to find a fully committed financial partner.
The problem with XRP/USD during Q3 was the lack of positive news. The company is facing a federal lawsuit that seeks to declare the token a registered security, but the legal team has made positive progress in this regard. The most exciting XRP development involves another test with a major financial institution, this time Bank of America, but it remains to be seen whether this could turn into a solid partnership. In the end, XRP investors will probably continue waiting for major news developments that can push Ripple back towards $0.50 territory.
