Markets by Trading view

Is Ripple (XRP) About To Start A Bull Run?


Ryan Fugger initiated Ripple as RipplePay in Vancouver, Canada, in 2004. It came with the objective of facilitating secure global money transfers. Subsequently, in 2012, Fugger sold the company to a consortium consisting of Jed McCaleb, Arthur Britto, and David Schwartz, leading to its transformation into a digital currency network under the name OpenCoin. However, McCaleb, previously associated with the failed cryptocurrency exchange Mt. Gox, departed from the company and created Stellar as a fork of Ripple in 2013. Following these developments, the company underwent a series of rebranding efforts, culminating in its renaming to Ripple Labs in 2013, before finally shortening its name to simply “Ripple” in 2015.

What is Ripple (XRP)?

Ripple (XRP) operates as a digital payment protocol and cryptocurrency designed to enable quick and affordable cross-border transactions. It uses the XRP Ledger, a decentralised blockchain-based system, and the Ripple Protocol Consensus Algorithm (RPCA) to validate transactions. Unlike Bitcoin’s energy-intensive proof-of-work mechanism, Ripple’s consensus algorithm ensures faster transaction settlements within seconds, significantly improving efficiency compared to traditional banking systems.

XRP serves multiple purposes within the Ripple ecosystem. It acts as a bridge currency, for seamless international trade by converting fiat money into XRP and then into the desired currency, thereby reducing costs and settlement times. Also, XRP serves as an anti-spam mechanism within the XRP Ledger, stopping malicious actors from flooding the network with pointless transactions by requiring a small amount of XRP to be destroyed as a transaction fee.

XRP’s Price Journey

In 2012, when Ripple, along with its token XRP, debuted, it was initially priced at ten cents upon listing on cryptocurrency exchanges. However, for the first couple of years, its value remained relatively stagnant, with minimal demand, hovering around half a cent before gradually climbing to 30 cents. Ripple’s price saw a significant surge in the spring of 2017, reaching $0.47 in May, only to plummet, losing over half its value. The cryptocurrency boom of that year boosted XRP to its peak value of $4.31 on January 5, 2018, marking a staggering 360-fold increase in just one year. Following the market crash in 2018, XRP’s value plummeted to $0.30. It wasn’t until 2021 that Ripple’s price showed signs of resurgence, briefly surpassing the symbolic $1.18 mark before retracting once more. Since the beginning of 2022, Ripple has struggled to exceed $1.18, finding stability around an average price of $0.88.

The Road Ahead

On May 15, Ripple (XRP) surged by over 5%, reaching a daily high of around $0.52. This increase is attributed to several factors: a spike in whale activity, anticipation of a favorable ruling in the ongoing Ripple-SEC lawsuit, and positive market sentiment due to the release of US CPI data

Whales, large holders of XRP, accumulated over 100 million tokens worth about $55 million in early May. Data from Santiment shows that those holding between 1 million and 10 million XRP added 60 million tokens since late April. Whale accumulation is often seen as a bullish sign, indicating confidence from major investors. This suggests they anticipate a positive outcome in the Ripple-SEC lawsuit, especially with Ripple recently filing to seal important documents.

Predicting the future trajectory of Ripple’s price is challenging, given its extreme volatility, like most cryptocurrencies. Although its value can remain relatively stable over prolonged periods, XRP is prone to significant fluctuations, such as rapid surges of over 1,000% in just a few days or dramatic declines of nearly 90% within months, like in 2018.

History shows Ripple’s unpredictable performance, but some trends can still be detected. In 2021, the asset re-entered a bull-market cycle, briefly surpassing $1.18 before settling around $1.00 by year-end, with minimal variation in the early months of 2022.

It’s crucial to note that Ripple differs from other cryptocurrencies like Bitcoin, as XRP cannot be mined. Instead, the Ripple company initially issued 100 billion XRP, with over 46 billion tokens currently in circulation. Regular sales of up to 1 billion XRP by the company each month do not necessarily support an increase in the token’s unit price, potentially leading to sustained stability in Ripple’s price.

In 2024, Analysts’ XRP price predictions suggest a range of potential values. The minimum expected cost for XRP is $0.506, while the maximum could reach $0.593, with an anticipated average trading price of $0.680. In May 2024, analysts foresee an average XRP rate of $0.593, with a range from $0.506 to $0.680, offering a potential return on investment (ROI) of 16.1%. Moving to June, the forecast indicates a potential ROI of 33.2%, with the average XRP rate projected to be around $0.576, fluctuating between $0.534 and $0.618.

As the year progresses, July’s forecast suggests an average XRP rate of $0.571, with fluctuations between $0.560 and $0.582, offering an ROI of 21%. August may see a slight increase in the XRP value to $0.576, with a projected minimum of $0.558 and a potential ROI of 12.8%. September’s forecast anticipates an average trading rate of $0.595, fluctuating between $0.561 and $0.629, presenting an ROI of 23.2%. In October, the XRP price may vary between $0.590 and $0.637, with an average rate of $0.614, yielding an ROI of 24.7%. By November, analysts expect the XRP rate to fluctuate between $0.569 and $0.659, with an average forecasted value of nearly $0.614, providing an ROI of 29%. In December 2024, the XRP price might fluctuate between $0.578 and $0.651, with an average rate of $0.615.

Author: Makinde Adeniyi

The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organisations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.

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