XRP price prediction: recent overview
In the world of cryptocurrencies, XRP is quite different. It is decentralized, but not as much as Bitcoin, Ethereum, and the likes. Unlike them, it doesn’t seek to be an alternative to the traditional banking system but rather to collaborate and improve the conventional banking system. Nonetheless, it is a cryptocurrency.
XRP is a cryptocurrency issued by Ripple and is among the top 10 crypto tokens by market cap. In recent months, it has had its fair share of controversy with the Securities and Exchange Commission (SEC) filing a case against the company behind the crypto asset and its executives.
The lawsuit focuses on whether XRP is a security or not. A multimillion question that has not been answered satisfactorily for years and which would determine the kind of future the digital asset has. While the case’s announcement led to a massive slump in value for the asset at first, the token has since rebounded, thanks mainly to retail investors and traders pumping the its value plus the general bull run of the crypto industry towards the end of last year.
In this article, we examine the current value of XRP, how much it would be worth in the nearest future, and the factors that could determine its future value.
The emergence and growth of Ripple XRP
Ripple has been in existence for a while. It was created back in 2004 as RipplePay, but the case of its innovation came too early for its time, as it made no significant mark then. However, it returned in 2012 as Ripple and soon after launched the XRP token.
Ripple XRP is unlike any other cryptocurrency. It differs on many levels, and this includes:
It is not blockchain-based
Unlike most of the cryptocurrencies in existence, the coin does not operate on blockchain technology. Instead, it is based on the Ripple Protocol Technology, which means it has no use for a distributed ledger database. This uses gateways linked to servers of the company in multiple countries of the world to verify and process transactions.
It cannot be mined
While the mining process is considered an integral part of all tokens, it is not the same for XRP. The limit for XRP coin is set at 100 billion coin created by the company. Over 35% of that coin has been released into the market, and the rest is held by the company who releases it periodically to control the supply and circulation of the token. The cryptocurrency is a deflationary one as the number of coins in the market reduces with each transaction.
Relationship with banks
This virtual asset is centralized, and its parent company, Ripple Lab, strives to create partnerships with traditional financial institutions like banks. The company sells its RippleNet technology to these institutions thereby increasing the popularity of its native token, Ripple XRP. RippleNet technology is a system that connects banks and facilitates cross border payments and settlements.
Due to the differences between Ripple XRP and other cryptocurrencies, it also has some advantages. Some of them are:
This is one of the most significant selling points of Ripple technology. The swiftness of transactions surpasses other cryptocurrencies and beats that of SWIFT wire transfer, the commonly used system in traditional banking. This makes it a better alternative for banks to facilitate the cross border payments as its XRP transactions are exceedingly fast.
Traditional banking system transactions and that of some cryptocurrencies tend to incur hefty transaction fees. But with the digital currency, this fee is drastically reduced to a pittance.
Reversibility of transactions
Another positive for it is that the transaction can be reversed or edited to deal with an error, if there is one.
All these features have enabled Ripple network to gain significant partnerships among traditional financial institutions. And it has also influenced the growth in value of Ripple XRP over the years.
XRP Prices Overview
For years after its creation, the coin value was so inconsequential that it was almost worthless. Before 2017, the value of the asset hovered around $0.01, but this soon changed as the token began to gain a wider coverage and it also leveraged on the bull run of the crypto industry in that year. By April 2017, XRP rose to $0.05; the gradual climb soon continued as it reached $0.25 in May.
After this, there was no going back for the asset, as it had snared the attention of crypto enthusiasts who saw the value it created and the potential it had. The value of the asset rose all through 2017 and into the early period of 2018 where it got to an all-time high of $3.84.
But this was soon followed by a massive drop in value that affected every other cryptocurrency too; many had labeled the incredible run of the industry as just a bubble, and like every bubble, it was going to burst. This was exactly what panned out in the case of the 2017 crypto industry bull run.
Towards the end of 2019, its price stabilized around $0.30, and did not cross the $0.5 mark all through the year. This means that Ripple XRP hasn’t been able to build on its old glory since then as its value never got to as high as even a dollar.
However, the bullish run of 2020 that was ignited towards the end of the year, helped the value of the asset to ascend. The value of the token got to as high as $0.8 before finishing the year at $0.66. Early 2021 was supposed to be a continuation of the rise in XRP value, but that could not happen due to the SEC’s announcement of a lawsuit.
Upon the announcement, some exchanges delisted XRP from their platform. Many of those holding the token also sold in panic. This led to the value of XRP plummeting to as low as $0.166. However, it has picked up again, going as high as $0.755. Ripple at present is trading between $0.4 to $0.5.
Looking at this overview, it is easy to see the high volatility of XRP in the past few months which makes it difficult to have a Ripple forecast. But the volatility has not stopped analysts from making XRP predictions based on trends. It only means that these forecasts can change at the slightest notice. However, they still give a rough estimate of what to expect from them.
XRP Price Prediction in 2021
There are several predictions as to what the Ripple forecast would be in 2021. This includes its peak prices, what it would be worth by the year-end, and its lowest value within the year.
According to Moody’s research, investor can expect 2021 to be a good year for blockchain with a massive increase in standards that will directly influence Ripple price. Already, Ripple’s XRP already has development plans in motion for 2021.
Given how past developments or even announcements have led to an increase in the value of XRP, the currency might reach $2. This will happen if the actions of Ripple technology lead to a partnership with more financial institutions.
In the past, XRP‘s popularity and, by extension, its increase in value has been heavily influenced by the partnership with these traditional institutions. More partnership will mean more adoption, which invariably means higher value.
However, it is not so simple for XRP. The SEC lawsuit complicates the whole issue even further. Before the SEC filed the case, the outlook for XRP was positive, even if it did not make many optimistic. But the lawsuit cuts its breakout short and makes a Ripple price prediction trajectory more challenging, unlike other cryptocurrencies.
Considering how difficult it is to predict a digital asset accurately, it is even more difficult for XRP. More traders are acting bearish with the XRP cryptocurrency after the lawsuit, raising fears that it could drop to below 10 cents. However, the price pump by retail investors and traders has allowed it to pick up again.
If anything, all these events show how extremely volatile cryptocurrency can be. If XRP should experience a real breakout in 2021, it can reach its all-time high of over $3. But that looks very unlikely as long as the SEC lawsuit hangs over its head.
According to Coinpedia, even with the lawsuit hanging over its head, Ripple XRP will trade at an average of $0.65 by the end of the year. The firm based its predictions on expert opinions that the currency will be worth $0.83 on average by the end of January 2021. This, of course, did not happen.
Thus, the highest projected price for the year is $2 while it could also go as minimum price prediction is $0.1 if the SEC lawsuit is not settled in favour of Ripple
XRP Prediction 2023
While the outlook might not look very positive for 2021, the future USD predictions look excellent. Though it may not be as high when compared with that of Bitcoin or Ethereum, it is expected that its growth will continue and its value could reach $3 by 2023.
This will happen if all the development plans that Ripple currently has in the offing are initiated, thereby allowing for more partnerships, not just with financial institutions but also with other institutional investors. Such widening of scope for Ripple will have an immediate benefit for XRP.
Ripple XRP Price Prediction for 2025
Five years from now is a long time away to determine what the actual price will be. However, according to Coinswitch’s algorithmic analysis, Ripple price will likely be around $4.52 by 2025.
Future and current partnerships with Banks in Latin America and Europe will help Ripple technology and its native coin. These partnerships will open the door for XRP to gain broader adoption in other parts of the world apart from America. This is already in place with a larger percentage of XRP holders not being in America.
Coinpedia has a more optimistic opinion as to what XRP coin would be worth in 2025, according to its price prediction, the currency would be in a range of $4 to $8 by that time, which would be a record high.
It, however, proposes a midpoint as the likely outcome. This means that by 2025, one XRP would be worth around $6. By this time, the adoption rate would have reached a level where it is more comfortable and more conducive for users to conduct a transaction with the currency and trade with it.
So, for 2025, the highest projected value of the asset is $8 while it could also go as low as $4.
Ripple XRP Price Prediction for 2030
The long-term projection of what the value of XRP would be in the next ten years also seems very remarkable. Experts expect the currency to grow exponentially as its adoption rate will continue to increase with time. By 2030, projections see its rates hitting above $17.
Latest XRP Price Prediction
Predicting the actual value of Ripple’s XRP in a market as volatile as this one is quite difficult. However, many platforms have made one prediction or the other about what the token would be worth, and this represents an easy way to get a clear view of what to expect. Here are some of the predictions:
Analysts at Capital.com expect XRP to finish 2021 with an average value of $0.30. Judging by the asset’s current value, the SEC’s lawsuit would have to drop for that to happen. Going further, it expects XRP to start 2022 at $0.50, but this will soon fall to lower than $0.1 by August. After that, it will recover to finish 2022 at $0.37.
Furthermore, the price of XRP by 2025 would be in the range of $0.50 to $0.60. With this Ripple price forecast, Capital.com does not see the XRP rising in value anytime soon. This represents a gloomy outlook for XRP.
While the Capital.com forecasts represent a particularly bearish outlook for XRP over the coming years, not everyone shares their pessimism. Investing Haven, for example, had a very optimistic prediction for XRP in 2020. It predicted that XRP would go as high as $20 in 2020, basing its projection on the claim that XRP has all the qualities of other cryptos and more.
However, the actual value of XRP at the end of 2020, a little more above $0.6, fell far short of the predictions.
Ripple coin news
The news platform, Ripple coin news, also has projections on the value of XRP in the next few years. It predicts that the price of the asset would stabilize after it survives this stage that is fraught with complexities. According to its priceforecasts, once Ripple XRP can pass through this stage and expand its alliances, it can achieve a range between $8 to $10. When that would happen, nobody knows, but it could be anytime soon especially with the level of advancement being made in technology.
For the news platform Oracle times, the price prediction could go as high as 2000%. However, it adds a caveat that Ripple should be the best option in the market for cross-border payments.
Given that cross-border transactions account for about $9.8 billion, it is a massive industry for Ripple technology to gain many alliances, which would inevitably help to improve the value of XRP in leaps and bounds.
Judging by these predictions, the one to five years projection for XRP is minimal at best. No one expects a surge that will see it rise beyond or even up to $10. While this does not compare to what other cryptocurrencies such as Bitcoin and Ethereum have, it is still a significant rise if it comes to pass.
Technical Analysis of XRP price forecasts
One of the best and most detailed XRP price forecast analyses is the one provided by Crypto Rating. This analysis explains the situation at present and future predictions in terms of XRP price action.
At present, XRP trades at $0.47 and with over $45 billion as its market cap, it is the seventh largest crypto token. At present, more than 45 billion XRP tokens are in existence. It is essential to know all these facts as they will help us make an accurate projection for the future price of XRP.
To better grasp this and make an accurate prediction, there’s a need to know the trading volume data. It is through this that one can determine the strength of each price trend. Thereby predicting with more effectiveness, the supply and demand shifts, which determine the price changes.
Data from coinmarketcap puts XRP trading volumes at close to $9 billion in the past 24 hours. This number represents a decline in trading volume compared to the day before. From these changes, it is easy to deduce that the demands for XRP have decreased as the supply has fallen.
Crypto Rating makes use of the Crypto Volatility Index (CVIX) to explain the fluctuations better. The index shows the price dynamics currently operating while also explaining what could happen later.
Volatility is an essential feature of the crypto market and one factor that has encouraged and discouraged many traders. The promise of high gains, even with the likelihood of increased risks, is something that continues to attract (many) traders. However, inevitable crises have had a significant effect on the occurrences of this.
With the CVIX, it is easy to understand better the personal sentiments existing in with traders’ and investors’ moods.
Employing the CVIX provides a profound insight into the underlying sentiments as it accurately depicts the participants’ mood. The volatility index is not a new development. The Chicago Board Options Exchange created it to determine participants’ expectations, especially related to the S&P 500 index price index.
The index was redesigned as CVIX for the crypto market. It works exactly like the VIX, except that it considers the demands as it applies to the crypto . For XRP, the value of CVIX is calculated using the average XRP price for a month alongside the deviations within a specific range.
At a particular time, the fluctuations show the extent of negative tension (fear) felt by participants, which is the primary force responsible for volatility.
This means that the level of volatility is very high as investors expect a fluctuation at any time. Looking at how the current value of XRP came to be, it is easy to see how possible that is.
presently, it is currently $0.554, this occurred following a 3.42% gain within the last 24 hours. In the last 30 days, XRP price has risen by 3.37%, and in the past year, it has increased by 3.60%.
Is XRP worth buying at present?
One of the biggest challenges for traders and investors is whether or not to invest in XRP. At its current rate, it is far cheaper than most of the other cryptocurrencies. This makes it accessible and easy to buy for anyone.
But in terms of returns, can one say it is worth it? The next five to ten years’ predictions do not position it as the best investment in the market. After all, in the best-case scenarios, it will only increase by 5x or 6x in the next five years. But a value of less than a dollar doesn’t look so bad.
The benefits it seems to offer such as the speed of transactions and low charges; would make it look like a good investment with more potential for institutional backing and developments soon.
But that is not everything. Its quasi-centralization and lack of mining make it a tad fishy as the company can easily manipulate the demands and supply if it wishes. Some people in the crypto community have even referred to it as a sham meant to get its creators rich.
However, Ripple has come out to say that it controls the supply of XRP and holds a larger percentage of the coin for a valid reason. As far back as 2017, it initiated a decentralization strategy for the XRP ledger. The success of that remains questionable.
Another issue that could affect the coin value predictions and any investment decision on XRP is the SEC lawsuit against it. While many believe the case will end in settlement and Ripple itself has defended itself vehemently, there is still enough room for doubts that it may end in favor of the SEC.
If that happens, XRP would no longer be considered a cryptocurrency but instead be seen as security. The lawsuit was responsible for the delisting of XRP from specific exchange platforms and the slump in price early this year.
While the currency has since rebounded, the level of volatility remains incredibly high. This means anything could happen. The CVIX score for XRP, according to Crypto Rating, is enough pointer to this.
Whether you have bought XRP or planning to buy it, this lawsuit remains something to consider. However, it is not enough to decide on investing in XRP. There is a need to study the trends and forecasts that are liable to change in this volatile crypto space.
Where to buy your XRP
1If you’re planning to buy or trade XRP, several independent cryptocurrency exchange platforms exist solely for that purpose. They include Bitstamp, Kraken, Gatehub, etc.
Buying on all these platforms is relatively easy and straightforward as they allow you to buy with USD, EUR, and even BTC. All you need is to have an account on the platforms, and you are good to go. You can link your credit or debit card. Wire transfer is usually available on these cryptocurrency exchanges too.
The forecasts for XRP vary widely depending on the analysis and period. However, most of them have two things in common – volatility and a moderately optimistic outlook.
The optimistic forecast will depend on the Ripple payment technology’s increased adoption in almost all predictions. The volatility of the asset, however, could stand as an albatross as it depends majorly on the outcome of the litigation between its parent crypto company and the financial regulator.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.