XRP: Buy the Dip?
It's been a strange roller coaster of a year for XRP (CRYPTO: XRP). There was a mini-rally in March, a huge rally in July, and another mini-rally in mid-October. But, after all that, XRP is still trading for just $0.62. That's nearly 35% below its intrayear high of $0.95.
That would seem to put XRP squarely in "buy the dip" territory. If you believe in XRP's long-term growth prospects, then scooping up some XRP now might seem to be a relative bargain. But there are three key factors to keep in mind if you plan on buying XRP.
XRP is reliant on a single catalyst right now: resolution of its long-running court case with the Securities and Exchange Commission (SEC). Since December 2020, the SEC has been attempting to classify XRP as an "unregistered security," so the price of XRP has been highly correlated with the zigs and zags of that case. If the market thinks that Ripple Labs (the company that created the XRP crypto token) is close to winning its case, then the price goes up. If the market thinks that Ripple Labs is close to losing its case, the price goes down.
Source Fool.com
