The XRP has been a highly controversial token. The cryptocurrency community is split between the ones who back the project, and the ones who bash it. The main topic that is doing much of the divide is the centralization dilemma. Disregarding those theoretical debates, XRP recently saw a big BOOM and broke past the important 1$ mark. If this strong momentum keeps going full throttle, can XRP reach $3 again?
Love it or hate it, XRP is here to stay. Talking about XRP being centralized is pretty much like bashing BNB for being the same. In fact, those two tokens were seen exploding in prices, and they’re up 55% and 65% in the past 7 days respectively. Currently, XRP is the talk of the town in the crypto sphere. Unlike 90% of the other cryptocurrency, XRP didn’t reach its all-time high price from 2017. With the current bull market, investors are flocking XRP at current prices, in order to benefit from a minimum of 100% returns by just reaching its previous ATH. Let’s talk about why XRP might potentially reach this price, as there are 3 main reasons for that.
1- Ripple company is ahead in the SEC Lawsuit
As stated in a previous article, the possibilities are getting strong for Ripple to not only manage to knock off the lawsuit and settle but even clear its name. The original dispute was standing because the SEC considered that Ripple company didn’t have a proper license to sell XRP, which the former considered as “unregistered securities”. On the other hand, Ripple is fighting back, claiming that the XRP token is not a security, to begin with, and is considered a cryptocurrency just like Bitcoin and Ether (which both have a tracked price fund on major Indexes).
Recently, Ripple company had access to the court files which will most probably help them identify loopholes used against it by the SEC. If Ripple manages to correctly identify its XRP token as just “another cryptocurrency” instead of a security, the lawsuit would be dropped.
2- Strong Prices are Attracting Investors Back
This is where we get technical and fundamental at the same time. Ever heard of a snowball effect? When you picture that usually, the view is downwards. For XRP, it’s the complete opposite, where a surge in buying momentum pushes prices higher. In turn, more excited traders buy even more, showing confidence again in XRP. This fact, coupled with reason number 1, is one analysis of why prices of XRP can reach even higher. Now for reason number 3, which is even more interesting.
3- XRP didn’t reach its previous ATH…YET
Unlike 90% of cryptos that existed back in 2017, XRP was faced with several bumps along the way. The most important hit was the SEC lawsuit, which didn’t help XRP rise along with the crypto market. On the contrary, XRP prices dipped to their 4 year-low prices and reached $0.17. While most cryptos are enjoying their above-ATH prices, XRP is looking so far determined to reach back its own ATH price of $3.
Currently, XRP price is sitting around $1.4 with a market cap of USD 62.6 Billion. For XRP to reach its previous ATH price of $3, it would require a market cap of USD 134.1 Billion. Looking at the current respective market caps, this valuation is not plausible in the short term as it would represent a market cap higher than BNB or half that of Ether. But this can be reached if the crypto ecosystem continues to evolve as a whole and if Ripple manages to strive forward with major fundamental news, coupled with strong technicals.
Conclusion – Can XRP reach $3?
Whether you love or hate the XRP token, one cannot but acknowledge the promising uptrend that is taking place currently. The above three reasons are definitely bullish signals, that promise a higher price for XRP, back to its ATH price of $3. On the other hand, we’re not saying that this will be happening next week or next month. A probable adjustment for the whole crypto market might still take place, especially with this extended uptrend. Price retracements might still happen, and Ripple company might still lose the battle with the SEC, so one must always be on the lookout for what’s happening in the crypto sphere.
Stay Ahead, Stay Updated
Rudy Fares