Ripple is an open-source protocol and platform for global payments. The Ripple platform allows cheap and fast transactions across the world and has created its own digital currency called XRP. Arguably, XRP price can reach higher valuations. That’s what we’re going to discuss in this article.
According to Ripple’s official website, XRP is a digital asset that is faster, more scalable and less costly than any other digital asset. XRP can be used by RippleNet users to source liquidity in transactions.
Recently, however, there has been a separation between Ripple and XRP as the SEC (Securities and Exchange Commission) has been pushing for a distinction between the two.
What is the Current Situation of Ripple (XRP)?
In the short-term, XRP has just experienced a massive bull move yesterday after surging more than 14% within a few hours smashing through many daily resistances.
The current price of XRP is around $0.21 and the digital asset has been able to set a daily uptrend, however, it’s important to note that this move was mostly fueled by US-Iran tensions and the announcement from Binance about the launch of XRP/USDT Futures.
XRP had a really poor performance in 2019, initially, the digital currency was trading at around $0.40 around January 2019 but quickly crashed down to $0.28 a few months later.
XRP did surge around 80% peaking at $0.51, however, the crash afterward was far more significant than most of the other cryptocurrencies and XRP ended the year losing 45% in price value.
XRP Will Most Likely Never Reach $100
XRP has a $9.15 billion current market capitalization, if somehow XRP managed to reach a price of $100, that would mean its total market cap would be around $4.3 trillion which is simply too high although not literally impossible.
It’s hard to see XRP ever reaching $10 let alone $100, the peak of XRP was back in 2017-18 during the crypto bull run and the digital asset managed to reach $3.38.
XRP has lost 95% of its value since then and even getting back up there seems like a very difficult achievement. Technically speaking, the longer time frames are quite bearish for XRP.
XRP/USD Monthly Chart – Bitfinex
For instance, the monthly chart is heavily in favor of the bears and has been that way ever since the peak of $3. The digital asset has been unable to recover even though the bulls have attempted a trend change many times.
The bulls would need to break above $0.51 in one move in order to shift the momentum in their favor, something that seems quite improbable right now. Bitcoin halving, set for May 2020, could boost Bitcoin’s price and drag XRP as well as other cryptos behind it but even then, XRP would need so much more to reach its all-time high.
Reaching $10 would put XRP at a market cap higher than $400 billion which is almost 4 times higher than Bitcoin’s current market cap. Really, the only way XRP would ever hit $10 in the next few years, would be to beat Bitcoin somehow, a task that seems impossible for any cryptocurrency.
Conclusion
XRP can probably hit its all-time high again, although, most technical indicators are not too positive right now. Even hitting $10 seems like an arduous task for XRP but it could happen within the next few years.
If another bull market like the one in 2017-18 happens again, XRP could certainly reach and surpass its all-time high and perhaps even surpass $10 but would probably not reach $100.
