Most cryptocurrencies move in tandem, following Bitcoin and the general market sentiment. However, not all cryptocurrencies move by the same percentage increase. While the market recovered on average by around 15% from the bottom, XRP prices increased by almost 30%. Not only is the price action of XRP interesting, but its SEC lawsuit is moving in a positive direction. In this XRP price prediction, we’re going to analyze where will XRP reach from a technical perspective. Let’s analyze 😉
What is XRP Token?
The XRP token is the digital asset on the XRP ledger, which provides on-demand liquidity for financial service providers. It also acts as a bridge currency to facilitate cross-border transactions. XRP’s transaction fees are 0.00001 XRP or 10 drops, which at today’s price is less than 1 cent per transaction. With XRP, payment providers can reach smaller markets, enjoy faster payment settlements, and reduce foreign exchange costs.
The XRP ledger is open-source and maintained by a global and independent community, and Ripple is an active member.
Is XRP Centralized?
Now let’s talk about Ripple’s controversy. Is the XRP token REALLY centralized? Well, there are many arguments on both sides.
When Ripple’s protocol is published, Ripple Labs has no control over it. Validators run the code themselves. This is pretty similar to Bitcoin’s core development team, maintaining the Bitcoin protocol. On the other hand, Ripple does have an influence on the protocol since it maintains it. So if Ripple decides to create more coins, it can succeed in doing so. Ripple is like a Central Bank for RippleNet. But if Ripple ceases to exist, the validators can still run the network themselves. But the products that Ripple offers to third parties are not open-source and are run solely by RippleLabs.
Also, unlike Bitcoin which is censorship-resistant, Ripple is compliant with AML and other reporting requirements. This raises the question of decentralization and automated decision-making.
XRP Price in Consolidation Mode
XRP crashed and reached the low of $0.28 back on the 18th of June 2022. However, prices quickly started to consolidate between $0.30 and $0.38. At the beginning of August, this consolidation was marked as over as prices breached the important $0.40 price mark. Naturally, prices retraced lower as part of a correction, but still eyeing to breach this area again. We can see a healthy uptrend forming from the last $0.30 price with XRP prices making higher highs.
XRP Price prediction – Where will XRP reach?
It is clear that the $0.40 is a short-term target for XRP. However, once prices establish well above this area, we expect prices to boom and continue to go higher towards the next price of $0.50. This is because previously, we saw no real support anywhere between those two price areas. We expect in the next uptrend of XRP to see some price-action in between this very same area. Of course, the crypto market needs to also go higher and consolidate briefly. By that time, Bitcoin should be consolidating between 28k and 32k while Ethereum should be consolidating between 2.2k and 2.5k.
