Ripples of uncertainty continue to surround XRP, the cryptocurrency created by Ripple Labs. XRP, once a high-flyer, has seen its price plummet amid a protracted legal battle with the U.S. Securities and Exchange Commission (SEC). But even as dark clouds loom, some analysts see a silver lining, predicting a future rise in digital assets.
A legal tug of war dampens the XRP price
The SEC lawsuit, filed in December 2020, claims the altcoin is an unregistered security. If this rating is upheld, it could severely limit XRP trading and dampen its value. The legal wrangling has taken its toll, with the price falling as much as 85% from its 2018 peak of $3.41. The past few months haven’t provided much respite, with almost 18% have experienced it.
Technical indicators flash red in the short term
Technical analysis, a method used to predict price movements based on historical data, paints a worrying picture for XRP in the near future. Analysts point to recent price chart breakdowns indicating 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 currency’s long-term prospects. Armando Pantoja, a respected crypto analyst, believes that XRP has the potential to rise between $8 and $20 by 2026. This would represent a phenomenal increase of up to 3,558% from the current price.
$XRP the real value is $8-$20 in 2026. It’s the easiest transaction of my life.
1. Historic Precedent Power Station
2. Tsunami of institutional adoption
3. Market trends and utility explosion
4. Future demand for financial services
5. Legal clarity and partnerships will boom pic.twitter.com/fv2WlkuNHk— Armando Pantoja (@_TallGuyTycoon) May 7, 2024
Pantoja bases its bullish forecast on several factors. He points out XRP’s historical performance and highlights XRP’s meteoric rise in 2017, where it peaked more than 650 times. According to Pantoja, this serves as a precedent for future growth.
Institutional adoption
Another factor fueling the 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 increase the value of the altcoin by increasing its usefulness and mainstream adoption. Recent collaborations with HashKey DX and SBI Ripple Asia strengthen the case for it institutional acceptancewhich may push the price of XRP higher.
XRP market cap currently at $28.7 billion. Chart: TradingView.com
Upgrades to the XRP ledger
Ripple has not been sitting still either. Through its development arm, RippleX, the company has introduced major upgrades to the XRP Ledger (XRPL), the technology underpinning XRP. Notably, the XLS-68d specification allows platforms to cover transaction fees for users without distributing free coins. This simplifies the onboarding process and can attract new users to the XRP ecosystem.
Market trends and community optimism
Pantoja also highlights broader market trends that could benefit XRP. The increasing demand for efficient financial services could create a perfect storm for XRP adoption. Furthermore, Pantoja expects a legal victory for Ripple, paving the way for further partnerships and market expansion.
The XRP community itself seems to reflect this optimism. Social media engagement around the altcoin has increased dramatically and the number of total holders and active addresses continues to rise. This suggests that despite the current challenges, many investors remain confident in the long-term potential of XRP.
Featured image from Wikipedia Commons, chart from TradingView
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