Besides Bitcoin and Ethereum, Ripple or XRP is another cryptocurrency that deserves to be considered for investing. In many minds, Ripple is a digital asset that is used by giant world banks and financial organizations. But what about common traders? Is this cryptocurrency can be used for trading? Can it be a worthy investment in the coming years? Let's figure it out.
Ripple: Some of the Basics
It’s worth starting with basic terms that will allow you to distinguish Ripple’s products. XRP (Ripple), XRP Ledger, and RippleNet - all these concepts are parts of the Ripple system.
- XRP (Ripple) is a digital currency powered by RippleNet. It is used to provide financial institutions with the ability to conduct transactions with low fees and short waiting times.
- RippleNet is a digital payment platform, which is built on the XRP Ledger's distributed ledger database. RippleNet is privately held and operated by Ripple.
- XRP Ledger is an open-source and is not based on blockchain but the previously mentioned distributed ledger database.
In common words, Ripple is a specific payment protocol that can compete with Bitcoin. It works similarly to a payment system, money transfer network, and currency exchange. Ripple interacts with cryptocurrencies, currencies, and commodities. XRP is an internal coin of the Ripple protocol.
Ripple is a payment system, money transfer network, and currency exchange that interacts with cryptocurrencies, currencies, and commodities.
How It Started
In 2004, Ryan Fugger announced the idea of the Ripple payment platform for the first time. Still, Ripple's development began when Jed McCaleb and Chris Larson took over the project in 2012 (at that time, it was called OpenCoin). Ripple started as a startup based in San Francisco. It developed a blockchain-like payment system. The protocol became famous among well-known financial organizations as it allows fast mutual transfers anywhere in the world. Can you imagine sending money within several seconds? It’s possible with Ripple.
Despite a common delusion, Ripple was created to provide an alternative transfer method for the banking system. Despite a common delusion, Ripple was created not to oppose the traditional banking system but to provide an alternative transfer method for the banking system.
The protocol is mostly used by banks applying the xCurrent software solution to provide cross-border payments with real-time transfers. However, traders can also interact with Ripple via trading it on crypto exchanges or via brokers. To do that, you need to know how to predict the price direction.
What Affects the Ripple Price
The cryptocurrency market's best feature is that every digital asset is affected by almost the same factors. It makes the trader's life easier. All you have to do is remember the main concepts, and you won't have problems when forecasting the crypto prices in the future.
Every digital asset is affected by almost the same list of factors.
Development of the Technology
You can see that when the technology improves, it signals the coin has a future. That's why investors will put their money into the token. According to CoinMarketCap data, the XRP/USD pair was at $0.23 on November 1st. However, it succeeded in reaching $0.76 by November 24th. This new record of unique addresses transacting in XRP was among the factors that supported the rise of the XRP price.
Ripple said it would dethrone SWIFT technology. If the protocol comes closer to its goal, it will signal an appreciation of the XRP.
To be aware of such developments, you should either check Ripple's website or read the crypto news.
Regulation
The Ripple company cooperates with large financial institutions, but there are regulatory issues that affect its value. For instance, on December 22nd, 2020, the SEC filed a case against Ripple for the illegal sale of the XRP coin to attract additional funds and use them for operations without disclosing how it was doing so. Later, we will talk more about this case. The only important thing, for now, is that the token crashed from 0.4457 (open) to 0.26 (close); the lowest price hit 0.2098 at Bitstamp.
Agreements
Talking particularly about Ripple, you should pay attention to new agreements with leading banks and financial organizations. Ripple became famous as many banks accepted its technology despite a common skeptical attitude to the crypto world. Ripple became popular as many banks accepted its technology despite a common skeptical attitude to the crypto industry.
For instance, in August 2020, HDFC Bank Limited, India's largest bank, joined RippleNet. In November 2020, the company managed to cooperate with the Bank of America. It's well-known that BoA is the second-largest bank in the US.
As soon as a new giant financial organization agrees with Ripple, it's a sign of XRP rise. However, you should understand that such events have a short-term effect on the price and barely cause prolonged trends.
Investors’ Mood
Investors' sentiment can be seen not only by monitoring the price direction but also by checking the action of key coin holders. When the holder of a large part of the coins sells them, the price goes down. For instance, in April 2020, Jed McCaleb, Ripple co-founder, sold 54 million Ripples. This action led to the fall of the cryptocurrency.
Market Sentiment
It doesn't matter how impressive the technology is, or how many investors believe in the coin's success. If the primary market trend is bearish, the cryptocurrency will fall. Crypto assets exist for many years, but not all countries have accepted this means of payment. The tightening of regulations leads to the depreciation of the crypto market. Don't expect your crypto to rise when other coins fall.
XRP: Past Price Performance
The analysis of the Ripple historical price is a vital part of successful investing. First, the past trends allow a trader to understand what factors and to what degree these factors affected the direction of the security. Second, a trader gets the full picture of the market volatility that affects the position size and trading strategies.
Although XRP is ranked fourth by CoinMarketCap considering its market capitalization of $13,674,263,496 (the cryptocurrency lost its third place due to the SEC filing, the market cap plunge (from 20,986,383,356), the XRP price is really low compared to, for instance, the Bitcoin price.
Ripple appeared on a cryptocurrency exchange on August 4th, 2013. At that time, it traded at $0.01. The highest price was recorded on January 4th, 2018 ($3.84). The main advantage of the Ripple is the low volatility it experiences. The most significant fluctuations happened in the years 2017 and 2018. Still, the sideways movement prevailed for years.
If you still think that the price of Ripple is too low compared to Bitcoin, it doesn't mean this asset isn’t worth investing in. The price doesn't matter if you consider the average growth. If you buy the coin at 30 cents and its value surges to $3, it means the price will rise by 1000%.
Ripple in 2020: Up or Down?
Over the course of the year, the price of the XRP/USD pair was quite stable. Look at the chart below. The pair has mostly been moving sideways. The first surge occurred at the beginning of the year and was followed by the next bearish trend, which began on February 15th and continued for a month. The bullish movement repeated in July but ended at the beginning of August. The most significant surge continued for five days, from November 20th to November 25th. Before the pair was trading within the range of 0.13-0.32, at that time, it managed to hit the 0.79 level.
However, the correlation ended on December 19th , when XRP started declining. The fall was intensified on December 22nd as the SEC filed a lawsuit against Ripple’s founder Christian Larsen, and CEO Bradley Garlinghouse for raising $1.3 billion by selling unregistered securities in the guise of XRP tokens. It resulted in a dramatic plunge of the cryptocurrency.
As of December 26th , XRP/USD has erased all previous gains. On December 23rd , the pair touched lows on July 27, 2020. As a result of the lawsuit, the XRP was delisted from many trading platforms. For instance, Bitstamp closed XRP trading to US users. A larger number of delistings is anticipated. The bearish trend will continue as well.
The market has been divided into two parts. Some analysts are talking about the end of Ripple. While others are sure the company will soon recover, as it's common for the SEC to file lawsuits against cryptocurrencies.
For instance, FlaviusTodorius67, a trader at tradingview.com, sees the key support at 0.10. If the XRP/USD pair succeeds in staying above it, the odds of recovery are high.
Ripple in 2021: Any Chances for a Rise?
Currently, all the Ripple price predictions are questionable due to the hard times the company is going through. However, if Ripple recovers from the claim against them, the current forecasts will make sense. According to research conducted by Moody's, standards of blockchain will increase by 2021. Still, it's not a problem for Ripple. It's likely the company will increase the number of agreements with leading financial institutions.
Moody's research claimed standards of blockchain would increase by 2021. No one knows the future. That's why we gathered Ripple price predictions from different analysts so that you can choose the most relevant.
TradingBeasts.com expects the XRP to start 2021 at $0.45. At the end of the year, the price will fluctuate near $0.49. Not a big rise, but at least the primary trend is not bearish. CoinLiker.com sees XRP at $2.29 in 2021. However, not all of the price predictions for Ripple are rosy.
Wallet Investor believes Ripple will suffer in the coming years. In 2021, the price of the XRP/USD will stay below 0.50. The downward trend will prevail.
Below you can see the Ripple price prediction of Longforecast.com. This website has the most bearish view. The XRP/USD pair will start the year at 27 cents and end it at 23 cents. The monthly forecasts will provide you with a clearer view of the possible price direction.
Ripple Price in 2022
The bigger the period is, the harder to get an accurate forecast. Nevertheless, most of the experts predict a bullish trend of the XRP. The bigger the period is, the harder to get an accurate forecast.
- According to Crypto Coin Society, the price of XRP will continue the upward movement in 2022, reaching $2.50. The projection will come true if the adoption of crypto assets will increase.
- CryptoWhale website expects Ripple to surge to $3.2.
- WalletInvestor projects the average price to stay below $1 in 2022. Yet, the maximum rate may hit above $1.
- TradingBeasts.com forecasts XRP will start 2022 at 0.50. However, the trend will be bearish, and the price will fall to 0.46 by the end of the year.
- Longforecast.com is still the most pessimistic about the price of XRP. The price will trade within the range of $0.27-$0.15.
Long-Term Forecasts: Ripple Price in 2023-2025
Although it’s unlikely a trader will hold a position for three or five years, an investor may hold the crypto asset for so long.
- Brad Garlinghouse, the CEO of Ripple, claimed the company would become Amazon but in the cryptocurrency industry by 2025.
- CoinLiker.com forecasts Ripple at $5.50 in 2023 and $10.81 in 2025. Before the SEC issue, the platform expected Ripple to become widespread and adopted over the next five years. The forecast can change depending on the outcome of the SEC lawsuit.
- TradingBeasts.com expects XRP at $ 0.4253 in January 2023. At the end of the year, XRP will cost $0.5084. There are no longer-term projections from the website.
- WalletInvestor sees XRP in 2023 at 0.656. However, the coin may lose some points at the end of the year, being at $0.593. In January 2024, the XRP should be at 0.6030; at the end of the year, the crypto asset will decline to 0.551. As for Ripple price prediction in 2025, the token has a chance to appreciate at the beginning of January 2025, being at 0.562. At the end of 2025, the Ripple will fall to 0.310.
- Longforecast.com doesn’t believe in the strength of the Ripple system. The coin will almost lose its value.
Ripple Price Projection for 2030
You will barely find Ripple (XRP) price predictions for 2030 as it's a long-term future. Not many analysts can make such forecasts, especially reliable ones, because the price depends on many factors that change daily. Smartereum has one of the most unbelievable projections. It anticipates XRP to skyrocket to $200-$300 by 2030. Can we say this forecast will come true? No one can answer that question with certainty.
CoinSwitch believes the crypto asset will surge to $17.0576 by 2030 due to the wide adoption of the asset. The source says XRP may become one of the most favorite cryptocurrencies.
Ripple Long-Term Price Prediction by Experts
The future of Ripple is under threat. Yet, there is an opinion that the company will overcome the lawsuit due to its strong cooperation with banks.
For example, Andrey Podolyan, CEO of cryptorg.exchange, said that Ripple is one of the main leading coins with huge trading volumes and a large community. Large capitals of investment bankers are invested in the coin. If sanctions are imposed, bankers will successfully settle them. They have a lot of money; if necessary, they will pay fines.
And it might be true. One of the examples of famous names that invested in the coin is Will Meade. Mr. Meade is a billionaire hedge fund manager who worked for Goldman Sachs. Despite knowing little about the crypto industry, he believes both BTC and XRP will rise. Before the SEC sued Ripple, he predicted the coin to reach $3 in the near future.
Brad Garlinghouse said the SEC action is an attack on the entire crypto world. The company is considering moving to another country if the US regulations are too tight.
Moreover, some big names have already supported Ripple. Michael Arrington, founder of TechCrunch: “This is an attack on all of crypto. While other countries are embracing the future, the SEC continues to lash out in fear.”
In 2018 Mr. Arrington said: “Ripple – or, in this case, XRP is the actual currency – is a really, really good way to move money. So, we denominate our fund in XRP because it's a fantastic way to move money across borders very quickly at almost zero cost.”
XRP Price: Technical Analysis
Although you can find Ripple's technical analysis on different platforms, it's always better to make your own Ripple XRP price predictions to be sure the forecast will work or at least to make your own mistakes. The crypto technical analysis doesn't differ from the analysis of currencies or oil, gold CFDs. All you need to do is define support and resistance levels and apply your favorite indicators.
MACD, stochastic oscillator, and RSI are among the best instruments that will help you to define market trends as well as entry and exit points.
If you’ve never traded, we recommend opening a demo account and applying some strategies without the risk of loss. Cryptocurrencies are among the riskiest assets; thus, be sure you know how to analyze the market.
Ripple (XPR): Trade or Invest?
It's always a dilemma whether you should trade or invest. It doesn't matter what asset you consider; it's still your choice how to deal with your funds. The main difference lies in the speed of potential profit. If you invest in Ripple, buying it on a cryptocurrency exchange, you should understand that you will need to keep the coins for a long period of time. Otherwise, investing doesn't matter.
By buying coins, you expect the crypto asset to appreciate in the future. Investing allows you to avoid daily operations such as technical analysis, news checking, and market monitoring. At the same time, you should understand that a long-term investment includes risks, the market can go against you, as no one can make accurate predictions for years.
Another way is to trade XRP pairs. Although trading includes risks, too, it allows you to limit them by opening multiple trades, buying and selling the asset. At the same time, you can open short-term trades. It gives you a chance to receive a potential profit faster. Another advantage is the limited funds required to open positions. If the broker provides leverage, it's easy to open trades having only $10.
Trading of cryptocurrencies can be done with a broker via CFDs.
Trading of cryptocurrencies can be done with a broker via CFDs. Before you decide which way suits you best, you can open a Libertex demo account that includes various assets, including cryptocurrency CFDs. Using a demo account, you can implement different strategies and check how the indicators work regarding XRP price movements.
Conclusion
To conclude, the SEC lawsuit has affected Ripple significantly. XRP that usually doesn't suffer high volatility experienced a plunge that will impact the future price of the cryptocurrency. Many companies have already suspended cooperation with Ripple.
The future of the XRP will depend on the outcome of the lawsuit. If the company can recover, it will make agreements with new financial companies. As a result, Ripple's value will increase. However, if some analysts' worst Ripple (XRP) price predictions occur, Ripple will be under the threat of disappearing.
Currently, traders can follow the market news and wait until the company solves the issue. Remember that a positive outcome will allow you to be sure of the Ripple coin's strength. Additionally, you will be able to buy the token at lows.
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FAQ
Let's round up what we have just learned about the future of Ripple.
What Will Ripple Be Worth in 2021?
It's hard to predict the Ripple price for 2021 due to the SEC filing. According to previous data, forecasts vary from $0.03 to $0.3.
Does Ripple Have a Future?
At the moment, Ripple's future is questionable. If the SEC lawsuit finishes well for the company, the XRP will recover and move up. However, a negative outcome may lead to hard times for the asset.
How Much Will Ripple Be Worth in 5 Years?
CoinLiker.com believes Ripple will be adopted worldwide. Thus, its price can surge to $10.81. Other Ripple (XRP) price predictions are less rosy. The coin may stay below $1.
What Will Ripple Be Worth in 2030?
This is the hardest question as it's almost impossible to predict the price direction for a period so far in the future. Still, we have some forecasts for you. Smartereum provided a very optimistic forecast of Ripple's value at $200-$300 by 2030. CoinSwitch believes the crypto asset will surge to $17.0576.
