The XRP token was among the most promising cryptocurrencies in the crypto community. A lot of investors noticed XRP when its price was consolidating at around 18 cents back in 2017. The popularity of XRP however dropped significantly in the past 4 years. A lot has happened to Ripple company, which valuation was heavily reduced due to many factors. Now that the market is turning to the green side, investors are asking whether to jump back into buying XRP. How high can XRP price reach? In this article, we take a look at XRP and whether it has the possibility to grow in the next year.
What is Ripple Company?
Ripple is a San Francisco-based FinTech company behind the global payment platform RippleNet. They basically created the XRP ledger blockchain along with its native token XRP. In fact, Ripple company started way back in 2004, before even cryptocurrencies were invented. They were trying to create an Internet of Value and create their own money, and RipplePay was created back then. Their network was small and the software was centralized. That’s why later in 2012, RipplePay merged with another company called Open Coin, and together they formed what is known today as Ripple.
What sets Ripple Company ahead of its Peers?
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.
What is the Story of Ripple and the SEC case?
Back in December 2020, the SEC slammed Ripple with a lawsuit for allegedly selling securities without a proper license. Of course, this statement is greatly debatable. First, cryptocurrencies were never considered a security, and by nature are not regulated. Second, there are no clear rules or specifics around cryptocurrencies yet. Ruling out that Ripple was dealing in a security that is not registered is plainly absurd.
The price of XRP immediately took a toll for the worst and dropped to USD 0.18 following the news. On the other hand, Block.one, the company behind EOS had the EXACT SAME allegations with the SEC, and they managed to settle within 1 year. Currently, there are many speculations that Ripple company is going to do the same.
XRP Price never reached its previous ATH
When the famous crypto bull run happened back in 2017, XRP prices soared from 17 cents and reached their all-time high price of around $3. Many investors were extremely happy with their investment in Ripple which yielded more than 1,400% within less than a year. However, things turned sour and XRP price adjusted heavily with the crypto market, wiping out most of its gains. Until today, XRP never managed to reach this high valuation, let alone surpass the psychological price of $2.
Fig.1 XRP/USD chart showing the rise and the fall of XRP back in 2017/2018 – coinmarketcap
XRP prices Consolidated for a long time
After the fall of the crypto market back in 2018, XRP prices consolidated for a long time. Prices consolidated from 2018 till 2020 between $0.20 and $0.50 without showing any sign of a comeback. In fairness, most cryptocurrencies did the same. But the problem is that a lot of competing crypto projects popped up and showed significant advancements in their offerings like Solana, Cardano and Polygon.
Fig.2 XRP/USD chart showing the consolidation in XRP prices between 2018 and 2020 – coinmarketcap
XRP is today on the RISE?
The crypto market recently crashed again. It looks like XRP is doomed with bad luck. From the first crash in 2018, followed by the COVID-19 crash in 2020, to another crypto crash in 2022. Now that the market is consolidating and even showing signs of a recovery, investors are considering buying XRP at the current price of $0.34. Not only is this area a strong support of XRP, but the upside is very high. XRP prices moved 10% higher in the past week and are looking to continue on their uptrend. If this continues, how high can XRP price reach?
Fig.3 XRP/USD chart showing the uptrend of XRP – coinmarketcap
XRP Price Prediction – How High can XRP price Reach?
Most XRP investors are eyeing specific price areas that were achieved in the past. Unlike Bitcoin which has predictions of $100,000 upwards, XRP is projected to first reach its all-time high price of around $3 first. However, there are shorter-term targets that are also important for XRP. Once reached, they confirm that the project is back on track. Below are the important prices needed for the short term:
Once the above targets are achieved, we can talk about reaching the price of $3 again, then at a much farther timeline, and if the project continues on the right path, and if the SEC case gets resolved..and if the crypto market comes back stronger than ever…and if Ripple makes new partnerships with big companies….we might see a price of $5. But until then, we can stick with the shorter-term targets