Despite the bearish price, Ripple's XRP is used in this unexpected way

Although they are the fourth most valuable cryptocurrency, cynics have long wondered if XRP has a use case for investors and retailers.

They ask if it is only a currency for banks and financial institutions, or if the asset has investment potential due to the difference between Bitcoin and tokenomics XRP.

According to a report from Xpring, Ripple's development platform that focuses on trends such as decentralized finance, cryptocurrency has a growing use case for retail investors.

Related reading: Crypto Tidbits: Bitcoin roars over $ 10,000 in the middle of the day, Ethereum 2.0 arrives

Report: XRP Finds Use As Exch ange Bridge

According to a report by Shae Wang of XpringXRP finds use as a means of transferring value between cryptocurrency exchanges. This is similar to how Bitcoin, Ethereum and USDT from Tether are used as a bridge between platforms due to their widespread adoption and liquidity.

"As market activity increased, network congestion on Ethereum (ETH) and Bitcoin (BTC) reached unprecedented levels

—The transaction fees for the two assets exceeded 5 times the norm. (…) We have seen evidence that many users, especially Ethereum users, can go digital XRP assets for foreign exchange balance transfers, ”wrote Wang.

Their analysis indicated that each time the Ethereum transaction fees increased, there was an increase in the number of XRP transactions sent between exchange accounts, as well as the trading volume of the XRP / ETH pair.

"How XRP enables faster and cheaper cross-transfers" chart from Xpring by Shae Wang, data analyst at the company.

This analysis indicates that altcoin is used as the bridge currency, but this factor alone is unlikely to increase cryptocurrency in the long run.

Crypto Has Downside Technical Outlook

Although XRP can get a deal because it is used to transfer value between exchanges, the technical outlook for cryptocurrency is expected to be bearish.

According to previous NewsBTC reports, Nik Patel, a major cryptocurrency trader and author of technical analysis, estimates that the XRP holding less than $ 0.21 means that the structure of the cryptocurrency market has become bearish.

"I am particularly interested in the highlighted area from which the market structure recently collapsed and became bearish. These breaks and changes also occurred in an important area: the 200-day moving average, ”he explained, referring to the table below.

XRP price table shared by Nik Patel in the latest edition of his "Market Outlook" series. The chart shows somewhat bearish outlook, with the cryptocurrency surpassing key historical resistance and experiencing a rejection of the 200-day moving average.

Patel explained that if the XRP continues to be rejected from the "lower side of this area", the range of $ 0.21, he expects a "rapid drop below $ 0.175". After that, he wrote, there will likely be additional evidence of the $ 0.125 range, the drop achieved by the cryptocurrency during the "Black Thursday" crash in March.