XRP, the bitcoin developed by Ripple Labs, is still surrounded with waves of doubt. Originally a high-flyer, XRP’s price has dropped after a protracted legal fight with the US Securities and Exchange Commission (SEC). Some analysts, however, see a silver lining—a potential increase in the digital asset—even as ominous clouds loom.
A Legal Tug-of-War Dampens XRP Price
Filed in December 2020, the SEC lawsuit claims the cryptocurrency is unregistered security. Should this classification be maintained, XRP’s trade could be greatly limited and its value would be diminished. With its price falling an amazing 85% from its 2018 top of $3.41, the legal wrangle has paid for itself. The last month alone saw XRP drop around 18%, hence the recent months have not provided any relief.
Technical Indicators Flash Red In The Short Term
Predicting price fluctuations based on past data, technical analysis presents a worrisome picture for XRP in the near future. Recent price chart breaks signal to ongoing negative pressure according to analysts.
XRP 30-day price action. Source: CoinMarketCap
A Bullish Case For XRP
Some observers remain hopeful about the long-term possibilities of the coin despite the present challenges. Respected crypto expert Armando Pantoja thinks XRP might hit between $8 and $20 by 2026. From its present level, this would show an amazing rise of up to 3,558%.
$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 hopeful forecast on a number of elements. He notes XRP’s historical performance, stressing its explosive climb in 2017 when it shot over 650 times to its highest point. Pantoja says this sets a standard for next expansion.
Institutional Adoption
Ripple’s expanding list of alliances with reputable financial institutions is another element inspiring hope. By raising its utility and general acceptance, integration with heavyweights like Bank of America and Royal Bank of Canada might greatly raise the value of the cryptocurrency. Recent joint efforts with SBI Ripple Asia and HashKey DX support institutional acceptance even further, therefore maybe driving XRP’s price higher.
XRP market cap currently at $28.7 billion. Chart: TradingView.com
Upgrades To The XRP Ledger
Not sitting idle either is ripple. By means of its development arm, RippleX, the company has unveiled important enhancements to the XRP Ledger (XRPL), the technology driving XRP. Especially, the XLS-68d standard lets platforms cover user transaction fees without handing free money. This helps the onboarding process and might draw fresh XRP ecosystem users.
Market Trends And Community Optimism
Pantoja also underlines more general market trends that can help XRP. The growing need for effective financial services might set XRP’s adoption in perfect storm conditions. Pantoja also expects Ripple to have a legal triumph, therefore opening the path for more alliances and commercial development.
The XRP community itself seems to share this hope. Social media participation around the altcoin has surged, and the overall number of active addresses and holders keeps rising. This implies that many investors still believe XRP has long-term promise despite present difficulties.
Featured image from Wikipedia Commons, chart from TradingView