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Tag: XRP

  • What Is the Optimum Price Level for XRP?

    What Is the Optimum Price Level for XRP?

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    Ripple is one of the most impressive blockchain projects. Unlike Bitcoin, which was originally introduced to create an internet-based currency, Ripple Labs saw the potential of the underlying blockchain technology and decided to create a decentralized infrastructure for the existing financial institutions.

    Even in the present day, when the crypto space has been bombarded with decentralized finance (DeFi) projects, only a handful of companies are truly competing with Ripple.

    With massive potential use cases, Ripple-issued digital currency XRP became very popular among crypto traders. It is one of the most controversial cryptos, yet remains in high demand. But, what is the optimum value of XRP? Is it currently undervalued or overvalued?

    67% Discount

    XRP is going through a roller coaster ride since 2020. The prices swang between a bottom of $0.2 and a peak of over $1.8 in the past 12 months, which was also triggered by the delisting of the token on US exchanges. Its volatility still remains and is mostly echoing the movement of the overall cryptocurrency market.

    Currently, XRP is trading at little more than a dollar for a few days, but the dominant market volatility can easily push the prices in any direction.

    “When XRP was delisted, around the turn of the year, the price had been floating between $0.40 and $0.60 — XRP saw a sharp decline in price directly after delisting but made a steep recovery to far over $1 by April. Since then, the price has ebbed and flowed, but hasn’t dropped back down to immediate post-decline numbers,” said Finder.com’s Zak Killermann.

    While Bitcoin and Ethereum are testing their peaked recently, XRP is trading significantly lower than its early 2018 peak. Then, the XRP price touched almost $3.34, meaning the token is now trading at a discount of over 67 percent.

    According to CoinPrice Forecast, XRP is likely to end 2021 with a value of $1.15, while it has the possibility of gaining 47 percent by the end of next year: both much lower than the tokens all-time high value. But what is keeping XRP from surging like Solana, Cardano’s ADA, or Polkadot?

    The SEC Case

    Though there is no certain answer, XRP price is most likely being influenced by the ongoing litigation against Ripple brought by the US Securities and Exchange Commission (SEC). The lawsuit alleged that XRP is unregistered security and accused the San Francisco-headquartered company of illegally raising $1.3 billion by selling the crypto.

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    The regulator’s move against the blockchain company prompted the US exchanges to delist the token as they wanted to avoid regulatory backlash for listing unregistered security.

    Though Ripple received recognition from many major international banks and financial giants like Bank of America, Santander, and American Express, the token’s future price is highly correlated with the SEC lawsuit.

    A favorable judgment can push XRP to a significantly higher level, while the complications associated with labeling XRP as security can plummet the token price to a new low.

    “US exchanges who have chosen to remove XRP have likely damaged their US customers holding XRP. Customers without offshore trading options were likely forced to sell at near-term depressed levels,” said Joshua Greenwald, Head of Risk at Uphold. 

    “Re-listing may help those who’ve continued to hold recoup some of those losses but many have sold, and for many, the damage is done.”

    He further pointed out a strange correlation between the overall market value of XRP and ETHUSD since mid-May.

    XRPUSD and ETHUSD correlation
    XRPUSD and ETHUSD correlation

    Big Fish

    Another factor, that can push the value of XRP higher is institutional adoption. Against unlike Bitcoin and Ethereum, XRP failed to get the attention of institutional investors. However, the ties of the project with big banks can surge the demand for the token when the widespread testing RippleNet starts.

    Though traditional hedge funds and institutions are yet to adopt XRP, many large crypto investors are already betting big on the token. According to Whale Alert, the number of large XRP transactions is also surging, signaling bullish bets on the token.

    “It’s hard to say if Ripple can survive regulatory challenges long term but the short term outlook for XRP looks promising, with a panel average end of year price prediction of $1.23,” Killermann said.



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  • Is It a Good Time to Buy XRP?

    Is It a Good Time to Buy XRP?

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    XRP is trading at an attractive price level following its correction from April’s peak. Though the cryptocurrency is still one of the largest in terms of market capitalization, is it a good time to buy it?

    XRP was issued by San Francisco-headquartered Ripple and the token is RippleNet’s native digital currency, meaning it has major real-world usage. Ripple’s partnership with big banks all around the world for blockchain-based cross-border payments boosts the future usage of XRP.

    But, XRP remains one of the most controversial cryptocurrencies. Many crypto enthusiasts were critical of the token from early days due to its centralization structure and Ripple having control on XRP’s supply. However, the biggest blow to XRP came when the US Securities and Commission Exchange (SEC) filed a lawsuit against the company alleging that XRP is an unregistered security, and Ripple illegally raised it with its sale.

    XRP Bulls

    That followed the delisting of the cryptocurrency from several US-based crypto exchanges, and the XRP token went down to around $0.13.

    But, things pivoted as Ripple found support in Asia. Crypto whales jumped in to buy the dip and pumped the prices aggressively, and along with the positive sentiments around the overall crypto market, XRP prices breached the $1.83 mark within a month.

    “The SEC suing Ripple simply delays the inevitable that XRP gets regulatory clarity and is deemed: NOT a security. What this headline does do, however, is scare retail investors into selling and scare the new investors from buying XRP,” CryptoClear Founder, Johnny McCamley earlier told Finance Magnates.

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    What’s Going On?

    However, the ongoing correction of the cryptocurrency market pushed down the XRP prices again. The token is trading at $0.62, as of press time, which is more than 66 percent lower than its peak achieved in April.

    From a technical standpoint, demand for XRP remains better than other cryptocurrencies. Ripple earlier reported that the demand for XRP surged in the first quarter of 2021. The company’s total XRP sales reached $150.34 million in the first quarter of 2021, which is a jump of approximately 97% compared to Q4 of 2020.

    “XRP is currently trending horizontally around $0.62, which is a sharp drop for April 15 when it almost reached $2. As things stand, things look pretty glum for Ripple having met continuous resistance at the 20-day SMA. Further rejection could potentially take XRP to the $0.55 support wall,” said Gate.io CMO, Marie Tatibouet. “My suggestion would be to wait to see if XRP opens a candlestick above the 20-day SMA or not.”

    XRP Price Levels, Source: Coinmarketcap.com

    In addition, whales have accelerated their activities with XRP. Finance Magnates recently reported that multiple crypto whales are transferring millions of dollars in XRP out of cryptocurrency exchanges.

    Currently, XRP has a total market cap of over $28.6 billion and is the sixth-largest digital currency, according to Coinmarketcap.com.

    Meanwhile, the ongoing litigations against Ripple can make or break XRP prices. “In the short term, I expect XRP to keep trending around the levels that it is at right now,” Tatibouet added. “In the long-term, assuming a favorable result in the SEC lawsuit, XRP could go back up to $2 at the very least, and then it could jump to $5 and reach new all-time high levels.”



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