Ripple company is one of those crypto projects that stirred many controversies. The first one came from the crypto community, as some perceived the token XRP to be centralized, having a company run everything. The second one came from the SEC, as they thought the company sold unregistered securities without having a proper license to do so. Controversies aside, the XRP token fell from #2 to the current #6 on the list of the biggest cryptocurrency by market cap. It seems that other altcoins like LUNA are growing faster than XRP price, which is struggling to break the $1 price mark. Can XRP reach 100 $ ever? Is that even possible? Let’s find out.
What is Ripple Crypto?
Ripple is a project that allows users to send, receive, hold and move currencies across borders in a fast and reliable way. Our current system which relies on banks and payment gateways is slow, fragmented, and expensive. Ripple company can settle transactions in 3 to 5 seconds from anywhere in the world. It is in fact much faster than Bitcoin and Ethereum!
Additionally, the infrastructure is highly scalable and is able to handle more than 1,500 transactions every second. You might ask now, How is this all possible? Well, RippleNet uses the open-source XRP ledger blockchain to track, process, and guarantee all transactions. But unlike Bitcoin, XRP does not use Proof-of-work and has no concept of mining. This means that the blockchain’s power consumption is minimal and is able to keep transaction fees low. XRP transactions are handled by an independent community of validation nodes who maintain the network and the transaction protocol.
Another plus for Ripple is that they are anti-money laundering compliant, with fraud detection, sanction screening, and regulatory reporting in place.
Why is XRP down currently?
Well, it all depends on which price you purchased XRP. If you purchased anywhere above $1, you will feel that the XRP price is low and not performing well. On the other hand, if you were among the few who caught the price drop when the SEC lawsuit was just announced, you might have been able to catch the low price of $0.11. This means that those lucky ones made more than 1,700% between 2020 and 2021. The current price of XRP is around $0.75 with a market capitalization of $35.3 Billion.
Despite the current SEC indictment that is pending, the price has performed well in the last bull market. However, the court case is not over yet, so caution should be exercised. On the other hand, chances that Ripple company can win the lawsuit are getting bigger. This might be a good sign for XRP hodlers, as any positive news in this regard can send XRP shooting high.
XRP Price Prediction – Can XRP reach 100 $ ever?
We hate to be the “bringers of bad news”, but let’s analyze. As stated earlier, Ripple has a current market cap of $35.3 Billion. If the price somehow managed to scale to $100, that would mean that the total market cap would have to be around $4.3 trillion! This seems pretty much impossible, especially compared to traditional capital markets.
Basically, it is very daring to ever suspect XRP in the direction of the $10 mark even. In fact, XRP was once the second-largest cryptocurrency by market capitalization and reached its all-time high of $3.38. This happened during the bull market between 2017 and 2018.
Since this high, the Ripple price has lost more than 75% in value, so even these price areas appear to be extremely difficult to attain. Additionally, from a technical analysis point of view, things are looking quite bearish for XRP in the longer term.
Looking at figure 2 above is heavily in favor of the bears. XRP price was able to form a possible double top formation during the last bull run as the price was rejected twice in a row at a similar level. This formation is a trend reversal formation, which often causes prices to fall. If Ripple price fails to break the $1.96 level during the next uptrend, we would expect the price to head towards the 2020 bottom soon. This is also possible in case the SEC lawsuit turned sour, sending prices back to $0.11.
Will XRP crash soon?
As long as the Bitcoin price is bullish, XRP price might be able to reverse higher. Bitcoin partly drives the market, with a current dominance of around 42.2%. Since Ripple is one of the most well-known currencies, we do not assume a crash where XRP alone loses value. Despite the technical analysis, one should definitely watch the court proceedings. If Ripple wins the case, there could be a strong pump. This could invalidate the possible double top formation.
Can XRP reach $10?
Reaching the $10 mark would mean a market cap of $400 billion for Ripple, which is almost 4 times what Bitcoin currently is. Such a market capitalization is not entirely impossible for XRP, but in the dimensions in which the cryptocurrencies are, it is currently still rather unlikely.
Even if the technical indicators for this event are not too positive, Ripple is likely to see its all-time high again. The $10 could be on the chart at some point, but it doesn’t look like it any time soon. That might happen after the SEC resolution, when the crypto market is massively adopted, and when regulators accept cryptocurrencies.
In the event of a new bull market, one should therefore be satisfied with a possible breach of old highs, even if some articles advertise surreal figures such as $100 or $589.