Ripple’s XRP had had a bit of a rough patch since its launch back in 2012. However, the past few months have been a real struggle due to the legal challenges it has been facing. The U.S. Securities and Exchange Commission(SEC) alleged that Ripple failed to register their offer and sell billions of XRP to retail investors. Consequently, a lot of crypto exchanges delisted Ripple.
Despite this shortcoming, it has remained popular on the international crypto market, and since the year started, it has gained more than 150% on its price. With the cryptocurrency market being so volatile, giving a definite prediction on its price is not possible. However, most analysts are pretty pessimistic, and they believe that the price of XRP will skyrocket. Let’s look at the reasons they are confident in their prediction:
Ripple’s Use in the Real World
Investors had a goal in mind during XRP’s establishment. The founders of Ripple wanted a crypto-currency suited explicitly for real-world applications. It is essential information that needs to be taken seriously by investors.
Most digital currencies have no clear way to becoming a ubiquitous mode of payment. One may say that different digital tokens are a store of value. However, cryptocurrencies have little use as far as being “currency-like” in everyday daily transactions.
If a currency increases or depreciates by double figures every day, it isn’t ideal for making payments. Also, considering the six or seven decimal places in the case of Bitcoin, it’s a lot harder to buy the loaf of bread.
XRP was, however, intended for payment processing. Specifically, XRP resolves a significant problem with two different currencies in cross-border transfers. The decentralized XRP blockchain technology enables practically immediate settlement of transactions.
This technology is an enormous boost for people who know how the SWIFT process works. Having a transaction approved in as little as 3-5 seconds instead of 1-5 business days is a real-world upgrade.
Ripplenet: A Major Deal for XRP
Ripplenet, the existing global payment platform of XRP, also has a crucial role to play. A decentralized network provides the user with a worldwide payment platform using XRP’s ledger and XRP coin.
This platform is extensively used and is increasingly influenced, but many people have not expected it to do so in recent years. The benefits of Ripplenet are primarily related to international transfers’ problems where much has to be done when a foreign transaction is undertaken.
Ripplenet eliminates the hassle of a foreign currency account and the fees paid to crypto exchanges, which are sometimes very high. Naturally, the most frustrating thing can be to wait for days to settle the transaction.
It offers companies a cheaper and efficient choice. In the local currency on both sides, the transactions are settled promptly. It is beneficial for huge, cross-border banking and multinational companies.
Global Banks Are Cooperating
Discussions and pilot projects are underway with central banks from Saudi Arabia, the UAE, Bank of England projects, etc.
Ripple will also partner with more European and Latin American banks to assist market payment technologies for XRP and Ripple. As the experts have pointed out, these developments could lead to a massive increase in the XRP token price. It suggests that the projection of the Ripple price should be optimistic.
Partnerships with central banks, major corporate giants, and banks are directed at Ripple’s revolutionary technology and potential. But the concern is the ‘opportunity’ bit that could affect Ripple price estimates negatively.
The experts have mainly stressed that ‘trials’ and ‘pilots’ are an extensive demonstration of potential (it could change the way we all use bank transfers). But unless it changes something, it hasn’t been disruptive enough, and hence the value of Ripple could decline without significant adjustments.
Institutional Partnerships
Ripple has good long-term prospects. While analysts are concerned about the imminent regulations, Ripple is unlikely adversely affected. XRP continues to draw institutional interests. It somewhat reveals the impact of crypto in disrupting the traditional financial system.
Ripple has been expanding its relations with institutions over the years, and it should be noted that currencies have become more valuable with usefulness. Blockchain’s CEO, Peter Smith, argued that “cross-border transactions” will have a significant need. It is already an area in which Ripple stands out from the rest. For cryptocurrencies, the future might prove bumpy, but Ripple hopes to do well.
XRP Seeks Compliance With Governments
According to a well-known cryptanalyst, the price development of XRP is mainly positive because it is the only project with continued efforts in crypto regulation. XRP may gain enormously once a legal framework has been established in the United States for cryptocurrencies.
XRP’s criticism continues because investors around the globe fear its centralization as Ripple owns a lot of XRP. For example, Jed McCaleb, co-founder of Ripple, has sold 1 billion XRP but still owns about 5 percent of the supply of the altcoin. Despite the criticism, the government prefers openness. Most people prefer using Ripple for PayPal as opposed to Bitcoin and other cryptocurrencies.
While other projects emphasize encouraging new investors to quickly get out of the scam, Ripple has been quietly engaging with government agencies to assure conformity.
Conclusion
In terms of widespread use, cryptocurrencies are generally still young. But, as I mentioned, the XRP case for real-world application is attractive. The ability to carry out day-to-day transactions in businesses in the future carries more weight to cryptocurrencies. XRP’s purpose is to bring evolution to the banking system. Similarly, its technological ability has proven worthwhile.
Since the beginning of June, XRP has traded within a declining price channel. However, last Thursday, the coin eventually got upside down and reached the 20 day M.A. on Friday at $0.6.
XRP fought the 20-day M.A. throughout the weekend but failed to conquer it until the XRP increased 10% today. The coin has reached a height of $0.696 and has since ground to $0.65 at the 50-day M.A.
