Ripple and Token: Let us dig deeper
Ripple (XRP) is a cryptocurrency that powers the RippleNet ecosystem. It is managed by Ripple Labs, which has partnered with leading financial institutions like Santander, Ria Money Transfer, and SBI international to simplify their remittances operations. The key product as part of its ecosystem is known as On-Demand Liquidity (ODL).
Ripple’s price has been in the spotlight in the past few months as investors focus on the ongoing lawsuit that was brought by the Securities and Exchange Commission (SEC). The regulator accuses Ripple Labs and its senior executives of raising $1.4 billion without following the due process. The defendants have denied these claims and insisted that XRP is a cryptocurrency like ETH and BTC.
XRP is trading at $0.82, which is about 51% above the lowest level this year and about 57% below its all-time high. Its market cap is $39 billion, while the circulating supply of XRP is 47.88 billion. The maximum supply limit is 100 billion XRPs, while the diluted market cap is $82 billion.
Ripple (XRP) Price History & Technical Analysis
XRP has been in a bullish trend in the past few years. It has risen by over 10,000% from 2016. However, the upward trend has not been in a straight line. The coin first rose to an all-time high of $3.2370 in December 2017.
At the time, most coins were in a strong bullish trend. Between December 2017 and March 2020, the coin was down by about 95%. Since then, it has risen by 640% and moved closer to its all-time high.
On the daily chart, the XRP price declined to a low of $0.5570 this year and has since then bounced back as investors focus on the lawsuit. It has managed to cross the 25-day Moving Average and is approaching the upper side of the descending trendline. Therefore, the overall trendline is still bearish until the coin moves above this trendline.
Ripple (XRP) Price Prediction for a Year
The XRP price movement will depend on four key factors this year. First, it will depend on how aggressive the Fed becomes on rate hikes. Some analysts are pricing in as many as seven rate hikes this year. Cryptocurrencies tend to underperform in a period of high rates.
Second, the outcome of the SEC vs. Ripple lawsuit will have an impact. Ideally, if the decision favors Ripple, we can expect the XRP price to rise. Third, Ripple Labs has hinted that it will go public after the lawsuit. Such a move will be bullish for XRP. Finally, there is the issue of regulations.
As shown in the chart above, Ripple has formed a descending triangle pattern, which is usually a bearish sign. Therefore, a bearish breakout cannot be ruled out in 2022.
According to LongForecast, the XRP price will end in 2022 at about $0.43, which is slightly below the current level. Wallet Investor expects that the coin will be at $1.28 in the next 12 months.
Ripple Price Prediction for 2025
While past history is not an indication of what to expect in the future, there is a likelihood that the XRP price will be much higher than where it is today. Besides, in the long term, cryptocurrencies have been on an upward trend.
According to an estimate by CoinPricePredict, users expect that XRP will rise to about $30 by 2025. LongForecast expects that the coin will be significantly lower than where it is today at about 17 cents.
One way of estimating where XRP will be in 2025 is to use Bitcoin since most altcoins have a correlation with the coin. Analysts expect that Bitcoin will be substantially higher than where it is today. For example, Cathie Wood believes that BTC will be at $1 million by 2030.
Therefore, if we take an estimate that BTC will be at $100,000, that means it will need to rise by 2.27x. If XRP matches this performance, it will be trading at $1.86 in 2025.
Ripple in Questions & Answers
Is Ripple Coin real?
Yes. XRP is a real coin. Its utility comes in its use in the RippleNet ecosystem, where it helps companies move money faster.
Will Ripple reach $10?
It is unlikely that the XRP price will rise to $10 in 2022 since it is trading at less than a dollar. But in the future, such a move cannot be ruled out.
Should I buy Ripple Coin?
For now, there are two main ways to go about this. You can allocate a small part of the funds to Ripple and hope that the developers will win the lawsuit. If this happens, XRP is expected to jump. Alternatively, you can wait to make a move after the judge delivers the verdict.
How much will be Ripple be in five years?
Ripple will likely be significantly higher than its current price. A simple estimate is that it will be higher than its all-time high of above $3.
Where do I buy Ripple?
Many mainstream exchanges don’t offer XRP because of the SEC lawsuit. Some of the decentralized exchanges that offer XRP are Kraken, BitFinex, and Uniswap.
This article represents the views of the author. Cryptocurrencies are highly speculative assets, and the author will not be held liable for any losses.
