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Ripple created its cryptocurrency in 2012 to facilitate its payment solutions. The company boasts a settlement time of three to five seconds for XRP users. Its website said: "It was built to be a better Bitcoin – faster, cheaper, and greener than any other digital asset." XRP was specifically designed with real-world uses in mind and enables affordable cross-border payments and microtransactions for Ripple's clients.
In 2022 the price of XRP started at US$0.8313 and then dropped to a low of US$0.5587 on 24 January 2022 as cryptocurrencies sold off. XRP moved up to US$0.91 on 8 February but was unable to hold the gains, retreating to US$0.63 on 24 February as financial markets fell sharply following Russia's invasion of Ukraine.
The XRP price moved up to US$0.9081 on 28 March but has been unable to sustain that level, trending down to the US$0.56 level on 8 May. The price dropped to US$0.3852 on 12 May as crypto markets plunged with the collapse of the Terra cryptocurrency tokens UST and LUNA.
XRP remained volatile in July, spiking and then pulling back three times. XRP reached the US$0.40 level on 30 July for the first time since 10 June, but was unable to hold there and slipped back to around US$0.37 in the first week of August. But that was still up from about US$0.31 in early July.
XRP price posted a sharp rally against Bitcoin (BTC) on continued optimism about a potential settlement between Ripple, a San Francisco-based blockchain payment firm, and the U.S. Securities and Exchange Commission (SEC).
In other words, Ripple and SEC agreed that the court should use the available evidence to reach a verdict on whether the blockchain firm illegally raised funds by selling XRP by December 2022, and thus avoid a trial.
XRP's price has boomed approximately 75% and 60% versus Bitcoin and the dollar, respectively, since Ripple's court filing, fueled by optimism of a possible win for Ripple.
The buying accelerated further after Ripple CEO Brad Garlinghouse suggested the same in his recent interview with Fox Business on Sept. 22.
It appears that traders have been buying the rumor in the run-up to the Ripple vs. SEC verdict. But while it remains to be seen if this will then turn into "sell the news," depending on the outcome of the ruling, XRP's technicals are hinting at a potential correction. Notably, XRP has already become an overbought asset versus Bitcoin and the dollar. The relative strength index (RSI) for XRP/BTC reached almost 85 on Sept. 23, way above the overbought threshold of 70 that typically precedes a strong price correction or consolidation.
XRP/BTC has already corrected by nearly 10% from its 13-month peak. The pair now tests 0.00002601 as its short-term support, which, if broken to the downside, could have it test 0.00002079 as its primary downside target or a 20% drop from current levels by the end of the year.
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