News
Ripple XRP Price Prediction – Forbes Advisor Australia
Predicting the future of any cryptocurrency can be like trying to predict the weather: there are many variables at play, some predictable, some less so.
There have been many price predictions regarding XRP over the years. Cryptocurrency hedge fund manager Thomas Kralow previously predicted that XRP would reach $30 a coin in 2023. This prediction does not take into account the mathematical unlikelihood of XRP reaching this price, as the total supply of coins means that the market capitalization of the project would be 3 trillion dollars. This is more than double the current market capitalization of all cryptocurrencies combined.
To avoid the sensationalist opinions often provided by XRP fanatics, Drozdz provides a balanced view of two scenarios: a bullish outlook, driven by increased popularity and positive legal outcomes, and a bearish view, potentially influenced by declining interest, by design of tokens and a wider sale on the market. -off.
The case of the bull
“Cryptocurrencies, in general, are driven largely by news, popularity, and, in the case of XRP, court decisions,” says Drozdz. These currencies have no intrinsic value, like physical assets or cash flows. Therefore, their value largely depends on investor sentiment.
The recent streak against the SEC has already created a ripple effect, pardon the pun, on his price. However, the trend back to the baseline price before the ruling indicates that the market believes the project may not be out of the woods yet.
The end of the SEC case in the coming months, especially if the penalties for institutional sales of XRP are light, could boost the price of
Beyond the legal realm, the overall state of the cryptocurrency market can have a significant impact on XRP. Drozdz notes: “A large-scale recovery in the cryptocurrency world could be a boon for XRP. If other cryptocurrencies rise, XRP could ride the wave.”
Cryptocurrency hedge fund manager Thomas Kralow previously predicted that XRP would reach $30 a coin in 2023. This prediction does not take into account the mathematical unlikelihood of XRP reaching this price, as the total supply of coins means that the market capitalization of the project would be 3 trillion dollars. This is more than double the current market capitalization of all cryptocurrencies combined.
The case of the bear
However, not all potential scenarios are rosy. The resolution of the ongoing litigation could, paradoxically, lead to a decline in the price of XRP.
“Once enthusiasm for the cause dies down, we may see a decline in interest in XRP. This could, in the medium term, have a negative impact on its price,” explains Drozdz.
While the price currently remains above the level the token was at before the ruling, if XRP continues the trend, it won’t be long before it drops to a new low.
The broader market also presents possible challenges. If a significant sell-off occurs in the cryptocurrency market, this could also depress the value of XRP. “Just as XRP can benefit from a bull market, it is susceptible to bearish trends in the broader cryptocurrency space,” says Drozdz.
There are also concerns about the use of XRP in Ripple’s cross-border payment system. Currency is largely redundant and potentially unnecessary for the payment system to function. Even though XRP is used to settle payments, the value of XRP does not impact the functionality of the system, as payments are settled in fiat value. This means that the payment can still be sent as usual regardless of whether XRP is equal to $1 or 1 cent, providing little incentive for positive price action.
For this reason, it is easier to perceive long-term value if the design and utility of the token in the system are improved.