According to Bittsanalytics, an analytics platform for cryptos, the sentiment around Ripple (XRP) has shot up in the last few days. Social media sentiment is important because almost everyone in crypto is also on one social media platform or the other. What’s interesting is that the sentiment around XRP (XRP) is now higher than that of bitcoin (BTC) yet bitcoin still has some ETF news coming up, possibly within the month. On the basis of this positive sentiment, an investor can deduce several things.
The first one is that Ripple (XRP) has most likely hit the bottom. It is quite noticeable that the price of XRP (XRP) has stabilized, even as the rest of the market gets more volatile. This could mean that XRP (XRP) has already priced in all the bad news that are hanging over it at the moment. As such, from a trader’s perspective, XRP (XRP) offers an excellent trade. That’s because if the SEC announces that XRP (XRP) is not a security, the upside momentum would be quite significant.
Second, it could mean that the market is slowly waking up the increasing possibility that XRP (XRP) is not a security, with more fundamentals supporting this analogy. Recently, after the Winklevoss ETF debacle, one SEC commissioner came out dissenting to the commission’s decision. She said something to the effect that the SEC is not a gatekeeper to innovations. This means that there is an increased awareness amongst regulators that they could be making moves that would ultimately hold back the U.S, from taking advantage of the emerging benefits of blockchain technology. The gatekeeper statement applies quite perfectly to XRP (XRP) which seems to be gaining traction all over the world. It is highly unlikely that after the bitcoin (ETF) disagreements, the SEC would move to rule in a manner that would disrupt the growth of a crypto that has already gained worldwide usage, including in an economy as significant as Japan. Besides, it’s a crypto that has a utility function to it, which makes it very different from a security in the traditional sense. As such, the positive sentiment is simply a realization that the odds of XRP (XRP) being declared a security are reducing by the day.
The fact that exchanges are slowly making use of XRP (XRP) as a base currency is probably opening investors to the reality that XRP (XRP) has a huge use-case outside of ripple labs driven partnerships. Most people have only come to associate XRP (XRP) with ripple labs, and peg its value on what ripple is doing. This is pretty much why the market panicked when the whole security issue came up. But with the idea that XRP (XRP) can be a better base currency than bitcoin (XRP) could have brought the excitement back.
Ripple (XRP) without a doubt the crypto to watch in the next few months. It could pull a surprise Bull Run in the near-future, one that could spur more adoption, and see it become a global currency.