The Ripple price has dropped in the past two straight days even after some positive news from Ripple Labs. the XRP token is trading at $0.6025, which is about 70% below the highest level in December last year. The total market value of XRP in circulation has declined to about $28 billion, making it the 7th biggest cryptocurrency in the world.
Ripple valuation soars to $15 billion
Ripple is a blockchain platform that is in the money transfer industry. The company partners with firms in the financial industry to help them solve their remittances business. It does this using the RippleNet technology, which includes an on-demand liquidity (ODL) feature.
Companies using the RippleNet platform experience faster payment processing times and a modernized messaging protocol. Today, it serves tens of companies from around the world. For example, Banco Santander has used RippleNet to process more than 450 million worth of transactions.
Other companies in the Ripple ecosystem are Bank of America, American Express, Azimo, Tranglo, LemonWay, and SBI Remit, among others.
Ripple is also expanding its operations. In 2021, the developers announced a plan to launch smart contracts on the XRP Ledger. The launch means that developers will be able to build decentralized applications in the DeFi and non-fungible token (NFT) industries. This will make it similar to other smart contract platforms like Solana and Ethereum.
Meanwhile, the XRP price reacted mildly to news that Ripple Labs was now valued at $15 billion after a private stock buy-back. This means that the firm bought stock from investors of its series C fundraising, who include Tetragon. The firm said:
“The buyback places Ripple’s new valuation at $15B and reflects Ripple’s strong position in the market and global company momentum – Ripple’s global business has grown exponentially and 2021 was the company’s best year to date.”
Ripple price prediction
The weekly chart shows that the Ripple price has been under intense pressure in the past few months, Along the way, the coin has formed a triangle pattern that is shown in green. The coin is also slightly below the 25-week and 50-week exponential moving averages (EMA). It has also formed what looks like a cup and handle pattern.
Therefore, there is a likelihood that the XRP price will bounce back in the coming months. If this happens, it will likely retest the key resistance level at $1.90.
