Ripple (XRP) breaks $1 resistance – should you buy it today

The story of Ripple (XRP)this year has been bittersweet, to say the least. At one time, the coin was ranked among the top three cryptocurrencies after BTC and ETH. It has since fallen to 7th. Despite these headwinds, XRP is still up 319% for the year, and just recently, it managed to cross above the $1 resistance. So, where does it move from here? Check this out:

• Despite breaking the $1 resistance, XRP has since retracted. It was trading at $0.92 at the time of writing.

• Ripple (XRP) is still fighting a suit by the SEC, something that offers significant downside risk.

• The coin will rely heavily on sentiment across the broader crypto market to mount any momentum in 2022.

Data Source: Tradingview.com 

Ripple (XRP) – price action and analysis

The volatility around XRP this year has been heart-wrenching, to say the least. Although the coin is way below its all-time highs of $3.35 seen in 2018, it has managed to perform quite well this year. 

Most analysts were looking to see if the coin could break the $1 curse. It did but has since retracted slightly below that threshold. The key however depends on how successful Ripple (XRP) is in fighting the SEC suit. If indeed, the coin gets a positive outcome, then we might see the breakout of the year. 

Some analysts are estimating that a positive decision from the suit could send XRP to $5. Besides, demand for altcoins is set to increase in 2022, something that could benefit XRP in the long run.

Should you buy Ripple (XRP)

Right now, Ripple (XRP) remains sluggish in terms of the price action. There is also a lot of downside risk with the SEC suit. So, in the long term, XRP may not be a good bet, at least until the SEC matter is resolved. But the coin offers good opportunities for short-term gains.