3 Bearish Signals for XRP
It has been quite the year for XRP (CRYPTO: XRP). The token hit a five-year high of over $3.50 in July as optimism surged about the end of the long legal battle that its developer, Ripple Labs, had been engaged in with the Securities and Exchange Commission, among other things. However, since then, the crypto's price has trended downwards.
XRP acts as a financial bridge and is the native asset of the XRP Ledger. It excels in making cross-border international payments easier. Let's say a U.S. company wants to pay a supplier in Europe. Rather than converting dollars into euros, it might put the dollars into XRP and then transfer the crypto to the supplier's wallet. The recipient could then convert that XRP into their own currency.
XRP plays a key role in Ripple Lab's operations. But that role may diminish if the business shifts its focus. That and other headwinds might make it difficult for XRP to regain its summer highs.
Source Fool.com
