XRP has been one of the most controversial cryptocurrencies since its creation by Ripple Labs in 2012. Its close ties to traditional finance have alienated parts of the crypto community. However, it retains a loyal following for its fast and cheap transactions. This XRP price prediction guide examines the coin’s outlook using technical analysis methods.
What is XRP?
XRP is a cryptocurrency created by the Ripple payment network to facilitate fast cross-border payments. Ripple Labs founders Arthur Britto, David Schwartz, and Chris Larsen designed it to overcome Bitcoin’s scalability issues while enabling seamless transfers between different currencies.
Some key features of XRP include:
Speed
Settlement of XRP transactions takes 3-5 seconds, far faster than Bitcoin’s 10+ minutes.
Low cost
XRP transaction fees are a fraction of a penny, making it affordable for micropayments.
Fixed supply
The total supply of 100 billion XRP was created at launch, unlike Bitcoin’s limited issuance schedule.
Bank partnerships
Ripple has partnered with over 300 banks and financial institutions to use XRP for settlement.
Controversies
XRP has been mired in controversy regarding everything from centralization to securities classification.
XRP is designed for use by financial institutions, though it trades publicly on exchanges. Its adoption rate will likely depend significantly on the outcome of Ripple’s ongoing SEC lawsuit.
Factors Influencing XRP Price
Numerous factors impact XRP prices, leading to high volatility:
Ripple Company Developments and XRP Regulatory Status
Ripple’s partnerships, service offerings, and legal issues have significant ramifications for XRP’s price action. For example, the SEC deeming XRP kept the asset from making new all-time highs during the 2020 and 2021 bull market in crypto. Now that Ripple has won the case against the SEC and a US judge deeming XRP not a security, new all-time highs could arrive during the next bullish cycle.
Cryptocurrency Market Trends
Like most altcoins, XRP’s price tends to follow Bitcoin’s price movements overall. When Bitcoin rises or falls sharply, so does XRP. Bitcoin itself has been struggling recently due to the US Federal Reserve raising interest rates.
Mainstream Adoption
XRP gaining transactional adoption from banks and payment providers would establish real-world utility and boost prices. But it faces stiff competition from private blockchains.
Decentralization Efforts
Lessening Ripple Lab’s control over XRP supply and the ledger through further decentralization could enhance XRP’s appeal and value to the crypto community.
Burn Rate
Ripple periodically burns XRP supply to manage circulation. Higher burn rates decrease available XRP which can positively impact prices.
XRP Price History
XRP’s price history has been defined by major announcements, partnerships, and controversies.
2012-2014: The Early Years
XRP traded for a fraction of a penny initially. Prices remained relatively flat between $0.002 to $0.02 till 2017 as Ripple focused on building partnerships rather than exchanges.
2017: Crypto Bubble Peak
As crypto mania peaked in late 2017, XRP saw massive speculative gains, rising from $0.006 in April to an all-time high of $3.84 in January 2018 – an incredible 63,000% return within 9 months!
However, this meteoric rise was fueled by hype rather than fundamentals. XRP came crashing down as Bitcoin collapsed, declining over 90% within a year after the peak.
2018-2020: Building Products
Between 2018-2020, XRP stayed afloat better than most altcoins, trading between $0.20 to $0.60 as Ripple doubled down on establishing real-world utility.
Major developments included:
- Ripple launched On-Demand Liquidity (ODL) allowing financial institutions to use XRP for instant cross-border payments.
- Over 300 banks signed up for RippleNet to connect payment channels globally.
- Remittance firms including MoneyGram began using ODL for transferring funds.
This suggested future adoption could be driven by Ripple’s offerings.
2021 – 2022: Legal Woes and a Bear Market Emerge
After starting 2021 strongly with XRP exceeding $1 again thanks to crypto resurgence, Ripple was hit by an SEC lawsuit in December 2020 alleging XRP was an unregistered security.
Many exchanges delisted XRP while its price collapsed due to negative sentiment. XRP failed to set a new all-time high while Bitcoin, Ethereum, Dogecoin, and several others as a result.
Each of these other cryptocurrencies set a peak during this time, entering a bearish market in 2022. This lowered the chances of XRP making a recovery during the year.
Recent XRP Price Action
2023 has been a difficult year for most cryptocurrencies, which are only starting to recover from the prolonged crypto winter. XRP, however, has outperformed most cryptocurrencies this year thanks to Ripple winning its legal battle with the SEC.
A US court judge ruled that XRP is not a security when sold to retail investors. This caused several exchanges to relist the asset, and prices spiked from under $0.50 to $1 in 48 hours after the decision. The SEC plans to appeal the decision, which prompted a full retrace of the rally. Now what’s next for XRP price?
Short-Term XRP Price Prediction for 2023
With XRP fully retracing the SEC court case ruling rally, sentiment is back to scared across the crypto market. Combined with other altcoins setting new lows, investors are fearful that the bear market might return.
XRP, however, could be performing a throwback retest of ascending triangle resistance turned support, which is common in financial markets. If support holds, price could ultimately approach over $1 in the next attempt.
Meanwhile, if price were to fall back through the bottom of the ascending triangle pattern, it would indicate failure and lead to a retest of bear market lows.
Medium Term XRP Price Prediction for 2024 – 2025
If XRP can continue with its bullish market, then 2024 and 2025 could see the final move in the first major bull market sequence.
Elliott Wave Principle believes that bull markets move in what’s called a motive wave, which is a five-wave upward sequence, where odd numbered moves are in the direction of the primary trend, while even numbered moves move against the trend.
Corrections are typically labeled as ABC, unless the correction is a triangle, in which it is labeled ABCD and E. More complex corrections can evolve over time. Triangles represent the consolidation before the final thrust in a sequence.
Price projections put XRP above $10, between $14, and $17 depending on momentum and supporting environment.
Long-Term XRP Price Prediction for 2030
XRP’s long term forecast is a lot more difficult to predict using traditional technical analysis techniques. In this case, we’ve chosen to draw a price mean through years of price action in an attempt to project a linear trend line.
Peaks and troughs would occur above and below the mean, providing the potential for mean reversion trades. The trajectory puts XRP upwards of $20 per coin in the future if the mean line is accurate.
XRP Price Prediction FAQs
Let’s look at some commonly asked questions regarding XRP price forecasts:
What was XRP’s lowest price?
During its initial couple years after launch, XRP hit lows between $0.002 to $0.005. Its recent low was $0.24 in July 2022.
What was XRP’s highest price?
XRP’s all-time high was $3.84 reached in January 2018 during the crypto bubble. It also briefly exceeded $3.60 in the same time frame.
How high can XRP realistically go?
Based on its fundamentals and adoption risks, a realistic best-case high for XRP by 2025-2030 is likely in the $10 to $20 range if it gains widespread utility. Reaching triple digits appears very unlikely.
Can XRP’s price crash to zero?
If Ripple suffered an existential threat, XRP could potentially crash below $0.01. But delisting risks have reduced after a US court deemed XRP not a security, making a complete collapse improbable without a catastrophic event.
Why is XRP price volatile?
As a cryptocurrency exposed to speculative trading, XRP experiences high volatility from hype cycles and shifts in investor confidence amplified by its low liquidity relative to larger cryptos.
When will XRP’s price stabilize?
XRP volatility should stabilize and gravitate closer to currency-like fluctuations once it establishes a reliable demand baseline among commercial users and institutions. But this remains dependent on Ripple’s success.
Investment Disclaimer: The content provided in this article is for informational and educational purposes only. It should not be considered investment advice. Please consult a financial advisor before making any investment decisions. Trading and investing involves substantial financial risk. Past performance is not indicative of future results. No content on this site is a recommendation or solicitation to buy or sell any securities or cryptocurrencies.
Credit: Source link
