XRP price struggling at $0.20 as early investor says Ripple is not a currency

XRP price struggling at $0.20 as early investor says Ripple is not a currency
  • XRP/USD has been struggling to stay above $0.20 in the past two weeks
  • Kevin Rose, early investor in Ripple, says he still doesn’t see Ripple as a currency
  • “I understood that it was going to be used as a way to handle settlement in some capacity," says Rose

Kevin Rose, the former Google employee and one of the early Ripple investors, says he still doesn’t see Ripple as a currency. In the meantime, XRP/USD is struggling to stay above $0.20 and the 100-DMA. 

Fundamental analysis: I don’t see Ripple as a cryptocurrency, says Rose

In a recent interview, Kevin Rose spoke about the early days of Ripple when the company tried to gain a foothold in the world of blockchain tech. During that period, Google invested a still unknown amount in Ripple, and Rose was the one who led the tech giant’s venture capital investment.  

“Early Ripple reminded me of a company that could come in, put some standards in place, and have these uptime guarantees and work with commercial banks and create a backbone that was based on blockchain,” said Rose. 

“The excitement was around creating something that commercial banks could understand and get comfortable with because they weren’t comfortable with just random blockchain technology created by anonymous founders”.

American tech entrepreneur said the idea of building a blockchain-based interbank system was exciting. He says he never thought that Ripple’s XRP would establish as a cryptocurrency.

“There was a very different world when Ripple was first getting off the ground. And the excitement that I had around Ripple was that cryptocurrency was so raw; there was no way for the enterprise to embrace it in any fashion”.

Even nowadays, Rose questions the possibility that XRP will become a cryptocurrency viable for anyone. Rose believes that the use case for XRP is to handle worldwide money transactions, rather than a crypto token. 

“I never really saw the use case for Ripple as a currency. I understood that it was going to be used as a way to handle settlement in some capacity.”

Ripple rolled out its XRP-based technology for cross-border transactions back in November 2018. Rose believes that the market might need a few decades of development before such technology can become mainstream. 

Technical analysis: Ripple struggles to stay above $0.20

Looking at the technicals, XRP/USD has been wrestling the 100-DMA for the past two weeks. The price action has struggled to stay above $0.20, where the 100-DMA is currently trading at, after breaking the $0.2150 horizontal support. 

XRP/USD daily chart (TradingView)

Even if the buyers force the price action above $0.20, a confluence of resistance is waiting just around the corner. On the downside, the bulls are relying on strong support at $0.1750, which may also be used by buyers to step in and get on the long side

Summary

Ripple has been trading sideways in the past two weeks, with a slight bias to the downside as the price action struggles to stay above the important resistance. In the meantime, one of Ripple’s early investors says he still doesn’t believe that Ripple’s best use case is as a currency. 

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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