Ripples of uncertainty continue to surround XRP, the cryptocurrency created by Ripple Labs. Once a high-flyer, XRP has seen its price plummet amidst a protracted legal battle with the US Securities and Exchange Commission (SEC). But even as dark clouds loom, some analysts see a silver lining, predicting a future surge for the digital asset.
A Legal Tug-of-War Dampens XRP Price
The SEC lawsuit, filed in December 2020, alleges that the altcoin is an unregistered security. This classification, if upheld, could severely restrict XRP’s trading and dampen its value. The legal wrangling has taken its toll, with its price dropping a staggering 85% from its 2018 peak of $3.41. The recent months haven’t offered much respite, with XRP experiencing a near 18% decline in the last month alone.
Technical Indicators Flash Red In The Short Term
Technical analysis, a method used to predict price movements based on historical data, paints a concerning picture for XRP in the immediate future. Analysts point to recent price chart breakdowns, suggesting continued downward pressure.
XRP 30-day price action. Source: CoinMarketCap
A Bullish Case For XRP
Despite the current headwinds, some analysts remain optimistic about the coin’s long-term prospects. Armando Pantoja, a well-respected crypto analyst, believes XRP has the potential to reach between $8 and $20 by 2026. This would represent a phenomenal increase of up to 3,558% from its current price.
$XRP true value is $8-$20 by 2026. It’s the easiest trade of my life.
1. Historical Precedent Powerhouse
2. Institutional Adoption Tsunami
3. Market Trends and Utility Explosion
4. Future Financial Services Demand
5. Legal Clarity & Partnerships will Boom pic.twitter.com/fv2WlkuNHk— Armando Pantoja (@_TallGuyTycoon) May 7, 2024
Pantoja bases his bullish prediction on several factors. He points to XRP’s historical performance, highlighting its meteoric rise in 2017, where it surged over 650 times to its peak. This, according to Pantoja, serves as a precedent for future growth.
Institutional Adoption
Another factor fueling optimism is Ripple’s growing list of partnerships with established financial institutions. Integration with giants like Bank of America and Royal Bank of Canada could significantly boost the altcoin’s value by increasing its utility and mainstream adoption. Recent collaborations with HashKey DX and SBI Ripple Asia further bolster the case for institutional acceptance, potentially propelling XRP’s price upwards.
XRP market cap currently at $28.7 billion. Chart: TradingView.com
Upgrades To The XRP Ledger
Ripple hasn’t been sitting idle either. Through its development arm, RippleX, the company has introduced key upgrades to the XRP Ledger (XRPL), the technology that underpins XRP. Notably, the XLS-68d specification allows platforms to cover transaction fees for users without distributing free coins. This simplifies the onboarding process and could attract new users to the XRP ecosystem.
Market Trends And Community Optimism
Pantoja also emphasizes broader market trends that could benefit XRP. The increasing demand for efficient financial services could create a perfect storm for XRP’s adoption. Additionally, Pantoja anticipates a legal victory for Ripple, paving the way for further partnerships and market expansion.
The XRP community itself seems to echo this optimism. Social media engagement surrounding the altcoin has spiked, and the number of total holders and active addresses continues to rise. This suggests that despite the current challenges, many investors remain confident in XRP’s long-term potential.
Featured image from Wikipedia Commons, chart from TradingView
