Could XRP Cryptocurrency Double Again in 2022?

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There is a sale going on at the moment, and Motley Fool investors should be watching closely – especially when it comes to cryptocurrencies. digital currency like XRP (CRYPTO: XRP) Its price is down 62% from its 52-week high. However, it’s still more than double the price it was in January 2021.

sector-wide fall

The main point to remember is that there is a decline in cryptocurrencies and technology stocks across the board. Cryptocurrencies like XRP are becoming risky, and with inflation rising along with interest rates, investors have been looking for safer options.

Now, of course, this is something investors should have done in the first place. But it was hard to ignore the golden sparkle of crypto companies. This is in addition to the tech stocks that made their way through 2020 and 2021. But now is a different story, although it is one that means an eventual return to normal life.

Crypto assets like XRP will bounce back, bounce back, and continue to climb. But don’t expect smooth sailing. This is the normal situation for the market, unfortunately. While there was a lot of market pull after the March 2020 crash, with every stock rebounding, that’s not the norm. Indeed, the stock market will rebound and stay on a positive path, but there will be dips along the way.

What about XRP?

As for XRP, is it the best place to put your cryptocurrency investments for Motley Fool investors? Now, maybe not. Cryptocurrency firm Ripple’s Lab continues to wait for an update on the Securities and Exchange Commission (SEC) lawsuit.

In the lawsuit, the Securities and Exchange Commission filed a lawsuit stating that two of its executives raised more than US$1.3 billion through an “offering of unregistered and ongoing digital assets.” Since 2013, the Securities and Exchange Commission has alleged that Ripple raised funds by selling XRP in unregistered securities offerings to investors both in the United States and around the world.

“The registration requirements are designed to ensure that potential investors — including, importantly, retail investors — have access to critical information about the issuer’s business operations and financial status,” said Mark P. Berger, deputy director of enforcement at Saudi Electricity Company. “Here, we allege that over the years, Ripple and its executives have failed to meet basic investor protection provisions, and as a result, investors lack the information they are entitled to.”

do not hold your breath

While other crypto companies may recover quickly, XRP may take some time. In fact, he may never recover if the lawsuit’s allegations are proven true. This is definitely one of the more volatile options, especially when looking at the major heavyweights that are likely to rebound before the Ripple.

However, the cryptocurrency market as a whole is a risky place. I recommend only taking a small percentage of your wallet towards this area, even as companies adopt the currency. With that in mind, there are likely to be much better options for Motley Fool investors than XRP at this point.