- RippleNet is promising; XRP is not
- Minor legal wins are lifting XRP’s price
- Swing trading XRP might be the best course of action
Ripple’s(XRP-USD) XRP made strong gains in the past month. The digital token has been up to over 20% in the past 30 days, as the market prices in the positive developments in its dispute with the Securities and Exchange Commission (SEC). Despite the favorable developments in the case, there is still plenty of uncertainty with XRP-USD as a long-term bet.
Ripple Labs is the company behind its namesake payment protocol and exchange. Roughly a decade ago, it created its first digital currency, XRP, to facilitate online money transfers. CEO Chris Larsen thinks that Ripple “is the first viable alternative to correspondent banking.”
Fast forward to December 2020, the SEC sued the crypto platform and its executives for alleged illegal sales of unregistered securities about XRP. The delays in the case have taken a toll on the XRP token and its prospects. Also, Larsen’s tall claims about Ripple are a stretch that hardly justifies a long-term case.
What are RippleNet and XRP?
Investors often confuse RippleNet and XRP, which muddles their perception of the Ripple token. RippleNet is a global payments platform enabling multiple financial institutions to make low-cost payments across 40 different countries. XRP is a digital currency and native asset of the XRP ledger. RippleLabs, the company behind the two, owns over 50% of the total XRP in existence, which it can release at any point. Moreover, nothing can stop it from producing coins, if so desired.
Ultimately the goal for RippleLabs is to promote its payment system and use XRP as a tool for its development. RippleNet deploys its On-Demand Liquidity (ODL) service to use XRP to bridge currencies. The payment platform isn’t compelled to use XRP but hopes to increase adoption in the coming years.
To be sure, mainstream adoption of XRP seems highly unlikely at this point. I don’t expect banking institutions to accept a platform embroiled in so much controversy. Moreover, with XRP being a public blockchain, financial organizations are likely to be sensitive about transactional information.
Is XRP A Long-Term Bet?
XRP is one of the few cryptos that failed to get going during the pandemic. Due to its tussle with the SEC, it failed to get going at a time when most of its peers were posting record gains. However, if it could emerge victorious in its case with SEC, recovery could be on the cards. However, a long-term case is tough to build for XRP at this point, based on the points discussed earlier.
Assuming things go south for XRP, who’s to say RippleNet won’t use another different crypto as a settlement base? It could also start a new one from scratch or meddle with XRP’s supply. Nevertheless, minor legal victories can spark intense retail action for the token. Positive developments in its case during April, May, and October last year triggered an incredible rally in XRP’s price.
In February this year, it gained 30% after it got permission to explain its fair notice defense against the SEC. Similarly, in March, the presiding judge denied the agency’s motion against Ripple’s fair notice defense. Looking at these events, XRP could perhaps be an interesting short-term play until the dust settles on its regulatory crisis.
Bottom Line on XRP-USD
A lot is riding on the SEC’s case on Ripple for the broader crypto market. However, for XRP, a positive result is unlikely to kick start a massive rebound, as some investors think. Volatility is perhaps the only certainty with Ripple, and it could be a great time for its investors to rake in some profits.
Its regulatory documents and the suggest that the case continues into the fourth quarter this year. That should give plenty of time for investors to take advantage of the swings in its price stoked by the latest on the SEC lawsuit against Ripple.
As always, though, it’s best to invest only an amount you can afford to lose in the crypto market. The market will remain volatile as ever, which is why it’s best to invest in coins with substantial use-cases and relatively stronger outlooks such as XRP.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
FAQs
“Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market,” Drozdz says. This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully.
Is Ripple good for long term? ›
Projections suggest the XRP supply might last up to 70,000 years due to this deflationary mechanism, though this depends on future developments. While XRP burning has a deflationary effect, it is likely to have a minimal impact on the price in the short to medium term.
Does Ripple crypto have a future? ›
If XRP hits new ATHs in 2025, its price could reach a high of $4.12, marking a significant milestone for the crypto project, while analysts predict that its average price could be around $2.30.
Will Ripple ever reach $100? ›
Crypto analyst JackTheRippler has raised the possibility of the XRP price rising to $100 soon enough. As part of his prediction, he mentioned what needs to happen for the crypto token to attain such ambitious heights.
Why not to invest in Ripple? ›
Key Points. Ripple's native token, XRP, is trying to disrupt how money moves across borders. Investors can't ignore Ripple's ongoing regulatory troubles. There is a ton of risk with owning XRP, so investors should probably avoid it.
How high can XRP realistically go? ›
Cryptonewsz.com has a XRP forecast that says the price of Ripple will continue to climb as well, but is much more bullish than Digital Coin Price, as by 2030 they expect that the average price of of Ripple could climb to as high as $9.81.
Is Ripple worth holding? ›
“Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market,” Drozdz says. This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully.
How much will 1 XRP be worth in 2030? ›
XRP Prediction Table
| Year | Minimum Price | Maximum Price |
|---|
| 2030 | $6.15 | $7.54 |
| 2031 | $9.12 | $10.77 |
| 2032 | $13.42 | $16.11 |
| 2033 | $19.69 | $23.48 |
8 more rowsRipple Price Prediction May 2024
Predictions suggest that prices will continue to climb steadily, reaching a significant resistance level at $0.75. This might be followed by a slight pullback. However, positive market activity is anticipated to quickly recover, supporting the upward trend.
Will XRP reach $20? ›
Armando Pantoja, a prominent crypto figure, has expressed optimism about XRP's future. He believes the asset's true value lies between $8 and $20 and predicts it will reach this range by 2026. The $20 target represents a staggering 3,557.6% increase from its current price.
Cryptonewsz.com is even more bullish: it believes XRP will rise to $9.81 by 2030, which would turn a $10,000 investment into more than $196,000. But for XRP to turn a $10,000 investment into over $1 million, it would need to generate a 100-bagger gain. Even the most bullish forecasts fall short of those expectations.
Did XRP win a court case? ›
July 13 (Reuters) - Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges, a U.S. judge ruled on Thursday, a landmark legal victory for the cryptocurrency industry that sent the value of XRP soaring.
Will XRP have a bull run? ›
In May 2024, analysts foresee an average XRP rate of $0.593, with a range from $0.506 to $0.680, offering a potential return on investment (ROI) of 16.1%. Moving to June, the forecast indicates a potential ROI of 33.2%, with the average XRP rate projected to be around $0.576, fluctuating between $0.534 and $0.618.
Will XRP be obsolete? ›
Despite the stablecoin news, there are several key reasons why XRP is not “doomed” and will likely continue thriving alongside Ripple's new offering: Explosion in Meme Coin Market; How to find potential successors to $WIF, $PEPE, and $BONK?
Will XRP skyrocket? ›
Mikybull Crypto claimed that the asset is currently at a level similar to those seen in 2017 and 2020, followed by significant price increases after periods of consolidation. This year, Ripple is expected to see a rise in value.
Which crypto will explode in 2024? ›
Which crypto will boom in 2024? Cryptos that could boom in 2024 include SingularityNET and Fetch.ai, both of which may capitalize on AI's popularity. Bitcoin is another crypto that could be poised for a strong performance in 2024, thanks to the SEC's approval of Bitcoin ETFs.
How long is Ripple good for? ›
Ripple's refrigerated products will stay fresh in your refrigerator until the date printed on the bottle. Once opened, they should be consumed within 7-10 days. It is not unusual for Ripple Milk to remain good past the 10-day mark; however, we only guarantee that it will be good for 7-10 days once opened.
What is the long-term forecast for Ripple? ›
Ripple continues its growth trajectory, and according to analysts, it will start the year with a price of €3.55 and is projected to finish 2030 with a value of €3.94.
