The company known as Ripple Labs seems to have a decent shot at replacing Swift as the way that banks move money around globally. The way banks currently send money from one place to another is archaic and certainly needs to be changed.
One of the biggest hurdles for mass adoption of Ripple’s XRP system, however, are the current battles playing out in the US court system.
Ripple currently has several lawsuits against it with the plaintiffs claiming that the XRP token is actually a security. If so, the company will likely need to pay dearly for not registering with the SEC before raising money from the public.
In a “slick move,” the company has now consolidated all of these cases into one hoping for a positive decision from the federal court.
We continue to keep an eye on this case with great interest and in the meantime, traders are working hard to defend the 50 cent per coin price. Though many of the popular cryptos have given back their gains from the early November rally, XRP is standing its ground quite well so far.
In a surreal coincidence, if we apply the famous Fibonacci Retracement Tool to XRP’s price rise, we see that the 50% mark comes out to exactly $0.50 per coin. Let’s hope it holds.
It’s important to note that even if we’re very generous and say that Ripple does have a 50/50 chance to replace the banking system (a recent report written by Ripple execs only gave it a 25% chance), it’s still a huge risk to take in the event that it doesn’t work out. That’s why it always pays to diversify your portfolio.
Traditional Markets
Stock indices are down today as it seems investors prefer to take risk off the table. There was an attempt at a rally on Wall Street yesterday after positive comments from Larry Kudlow on China trade, but it did fade by the end of the day.
The tech sector is being watched particularly closely and Apple stock is a concern for investors wondering if iPhone sales may have peaked. Apple has now fallen 17.5% from it’s all-time high and is now trading below its 200 DMA (blue line).
