In addition to Bitcoin and Ethereum, Ripple (or XRP) is another cryptocurrency that deserves consideration for investment. In many minds, Ripple is a digital asset used by giant world banks and financial organisations.
But what about everyday traders? Can this cryptocurrency be used for trading? Can it be a worthy investment in the coming years? Let’s explore that.
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What is Ripple?
Ripple is a privately-held fintech company that provides a global payment solution via its patented payment network called Ripple Network (also known as RippleNet). RippleNet is a payment network that is built on top of Ripple’s consensus ledger, called XRP Ledger (also known as XRPL). Ripple funded the development of the open-source XRP Ledger.
Unlike most cryptocurrencies out there that cater to peer-to-peer needs, Ripple was made to connect banks, payment providers and digital asset exchanges, enabling real-time settlement expeditions and lower transaction fees.
Ripple is a privately-held fintech company that provides a global payment solution via its patented payment network called Ripple Network (also known as RippleNet). RippleNet is a payment network that is built on top of Ripple’s consensus ledger, called XRP Ledger (also known as XRPL). Ripple funded the development of the open-source XRP Ledger.
Unlike most cryptocurrencies out there that cater to peer-to-peer needs, Ripple was made to connect banks, payment providers and digital asset exchanges, enabling real-time settlement expeditions and lower transaction fees.
What’s next for Ripple’s XRP in 2022?
The markets are bullish for the year ahead. Much, however, will depend upon the outcome of two lawsuits.
A claim of bias against the SEC filed by Empower Oversight, a non-profit government watchdog, will be key. Empower Oversight claims that SEC officials were biased against Ripple Lab and XRP. A verdict in favor of Empower Oversight would give the SEC more reason to close out the claim against Ripple Lab, which should favor XRP.
Such an outcome to the claims could see XRP breakout from its January 2018 ATH $3.35. Some are talking of hitting $5.00 levels in the year. An unfavorable outcome, however, would have a devastating impact on XRP and XRP holders. While torn, the markets have been more optimistic than earlier in the year.
Aside from the outcomes of the two lawsuits, broader crypto market movements will also influence, however. A bearish year for the crypto markets could see XRP fall back to $0.50 levels. The downside risk to the broader crypto market remains greater regulatory oversight.
Ripple Price Projection for 2030
You will have a hard time finding Ripple (XRP) price predictions for 2030 because it’s so far off in the future. Not many analysts can make such forecasts, especially reliable ones, because the price depends on daily factors. Smartereum has one of the most unbelievable projections. It anticipates that XRP will skyrocket to $200-$300 by 2030. Can we say this forecast will come true? No one can answer that question with certainty.
What Affects Ripple’s Price?
The cryptocurrency market’s best feature is that every digital asset is affected by almost the same factors. This makes traders’ lives easier. All you have to do is remember the main concepts, and you won’t have problems forecasting crypto prices in the future.
Regulation
The Ripple company cooperates with large financial institutions, but there are regulatory issues that affect its value. For instance, on 22 December 2020, the SEC filed a case against Ripple for the illegal sale of XRP coins to attract additional funds and use them for operations without disclosing how it was doing so. Later, we’ll talk more about this case. The only important thing, for now, is that the token crashed from $0.4457 (open) to $0.26 (close); the lowest price hit $0.2098 at Bitstamp.
Agreements
Talking particularly about Ripple, you should pay attention to new agreements with leading banks and financial organizations. Ripple became famous as many banks accepted its technology despite a common skeptical attitude to the crypto world.
For instance, in August 2020, HDFC Bank Limited, India’s largest bank, joined RippleNet. In November 2020, the company started collaborating with Bank of America, the second-largest bank in the US.
As soon as a new giant financial organization agrees with Ripple, it’s a sign that XRP’s rising. However, you should understand that such events have a short-term effect on the price and barely cause prolonged trends.
Investors’Mood
Investors’ sentiment can be seen by monitoring the price direction and checking the action of key coin holders. When the holder of a large part of the coins sells them, the price goes down. For instance, in April 2020, Jed McCaleb, Ripple co-founder, sold 54 million Ripples, leading to its drop.
Market Sentiment
It doesn’t matter how impressive the technology is or how many investors believe in the coin’s success. If the primary market trend is bearish, the cryptocurrency will drop.
Crypto assets have existed for many years, but not all countries have accepted this means of payment. The tightening of regulations leads to the crypto market’s depreciation. Don’t expect your crypto to rise when other coins fall.