price pulls back from 2-month high

The Ripple (XRP) price has retreated after climbing to a two-month high last week, with cryptocurrency markets trading lower on 17 November.

Earlier, the price moved up in response to news that Ripple’s Liquidity Hub for enterprise customers will launch in 2022. In the meantime, the cryptocurrency remains under pressure from an ongoing case filed against the developers by the US Securities and Exchange Commission (SEC) that claims Ripple Labs is violating regulations by offering XRP as an unregistered security. 

Will Ripple go up or down from here? 

In this article, we look at the latest developments and the short-term outlook for the price.

Ripple supports seamless crypto access for enterprises

Ripple Labs, the company that develops the Ripple protocol and XRP cryptocurrency, announced on 9 November that its new Liquidity Hub “will allow customers to seamlessly access crypto assets from a variety of global venues, including market makers, exchanges, OTC desks and in the future decentralised venues. 

“The product will support turn-key integration and smart order routing to source digital assets at optimised prices giving customers the ability to easily buy, sell, and hold crypto assets.”

The launch will initially support bitcoin (BTC), ether (ETH), litecoin (LTC), ethereum classic (ETC) and bitcoin cash (BCH) as well as XRP, with plans to add more tokenised assets in the future. Availability will vary by geography. Ripple also plans to add features such as staking support and yield generating opportunities.

Ripple Labs has used Liquidity Hub for its own internal liquidity management for nearly two years as part of its On-Demand Liquidity (ODL) product, powering transactions worth billions of dollars. By releasing the product to its customers, it aims to help financial institutions or corporates that need support preparing for the transition to using cryptocurrencies.

Coinme, a US licensed cryptocurrency cash network, is the first partner to use the underlying technology platform of the Liquidity Hub, with plans to adopt more of its functionality as it becomes available, Ripple Labs said.

The XRP price chart shows the coin climbed to $1.35 on 10 November following the announcement, its highest level since 7 September. 

Cryptocurrency prices have been rallying after a dip in late September, with many reaching fresh all-time highs. But the ripple trend, while higher, has been limited by the effect of the SEC lawsuit. Several US exchanges removed XRP from their listings when the lawsuit was filed in December 2020, limiting trading activity and weighing on the price.

In the latest development in the case, on 8 November the court ordered Ripple Labs to search through and turn over video and audio recordings of its internal meetings, which the SEC claims would indicate XRP was sold and marketed to clients as an investment contract.

Ripple Labs continues to announce new partnerships during the case. In a third-quarter update, the company said that its On-Demand Liquidity offering for cross-border payment settlement is now available in over 20 countries, up from three in the third quarter of 2020. Ripple most recently announced new deployments in the United Arab Emirates (UAE) with blockchain-based financial services company Pyypl and Japanese money transfer provider SBI Remit.

ODL transactions were up by 130% from the second quarter and accounted for 25% of total dollar volume across the Ripple network. “While our U.S. ODL flows were essentially halted due to regulatory uncertainty, international ODL volume has continued to surge, with volume growing more than 25x since Q3 last year,” the company said. 

“Looking ahead, we’re also exploring new solutions to more easily enable bringing the benefits of ODL to our customers in the US.”

According to another Ripple news, on 20 October, it also announced that UAE-based foreign exchange and money transfer company Al Ansari Exchange has joined RippleNet. Using Ripple’s cloud-based financial network technology, RippleNet Cloud, Al Ansari Exchange will connect with money transfer technology company MoneyMatch to enable same-day remittances to Malaysia. The new service will provide transactions denominated in Malaysian Ringgit initially, with plans to add support for the Brunei dollar and the Australian dollar in the future.

Ripple is also working on central bank digital currencies (CBDCs) in various countries, with more than 80% of central banks exploring a form of sovereign-backed cryptocurrency, according to the company. On 22 September, it announced a partnership with Bhutan’s central bank, the Royal Monetary Authority (RMA) to pilot a CBDC in phases using Ripple’s CBDC solution. And on 14 October, Ripple joined the Digital Pound Foundation, which is focused on developing a digital pound in the UK.

Ripple chart analysis shows that the XRP coin has gained nearly 400% year-to-date, with the coin trading at $1.10 at the time of writing (17 November).

5-year XRP price chart

Where do forecasts predict the price could move next?

Ripple (XRP) analysis: will the price fall or advance?

XRP technical analysis from CoinCodex was bearish at the time of writing, with the XRP price dropping to $1.10 and falling through the previous $1.12–$1.17 support levels. There were 12 technical analysis indicators giving bearish signals compared with 17 giving bullish signals. CoinCodex predicted that the XRP price could trade at $1.08 by 22 November.

The Ripple short-term forecast from algorithm-based data analysis at Wallet Investor indicated that the price could move back up to $1.17 by the end of November and end the year at $1.52, its highest level since the May sell-off. For the long-term, the service predicted that XRP could trade above $4 in five years’ time.

Ripple price analysis based on historical data from DigitalCoin projected that XRP could average $1.86 in 2022 and $5.01 by 2028, while Price Prediction forecast that coin could average $1.74 in 2022 and $15.92 in 2028, rising to $32.33 by 2030.

It’s important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts can and do get their predictions wrong.

We recommend that you always do your own research, and consider the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. You should be aware that the past price performance is no guarantee of future returns and never invest more than you can afford to lose.

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Read more: Bitcoin analysis: What’s next after fresh highs?

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