The price of Ripple (XRP) saw an increase of 28,000% in 2017, and today it has managed to get a market cap that puts this altcoin in the third place. What is most surprising for XRP is that it managed to withstand 2018 bearish trends, while other major cryptos where holding on for dear life. Even though no one can accurately make a Ripple price prediction, there are some factors that could determine in which direction the price of XRP might be heading.
Factors that could drive Ripple’s price up
- Ripple has a large list of financial partnerships that is constantly expanding. Its network of members consists of large global banks and payment services. Ripple’s protocol is used by many financial institutions for the cross-border transfer of their funds. Ripple has announced that it will be adding more important clients to its structure, which could lead to a growth in the size of its market cap and price.
- The global remittance payment sector is a market that has a value of hundreds of billions of dollars in which Ripple can potentially enter.
- Its corporate partnerships and widespread availability on exchanges make Ripple a very legitimate and credible blockchain project to investors. This fact could lead to an increase in demand.
- Out of its total supply of 100 billion XRP, 55 billion XRP have been put in escrow by the Ripple company. A smart contract releases from the escrow 1 billion XRP each month during the course of 55 months. The XRP tokens will be given to partners from the Ripple network and other affiliates to help them engage in the coin to promote adaptability.
- Ripple has recently announced that it will be merging all their various technology solutions into one stack at some point in the future. It was also mentioned that XRP token will have a key role. This news did not make big headlines, maybe because it was released in a time when the crypto markets were going through a rough bear season. In 2019 there will be more news and details about this type of merger.
Image source: NullTX
Factors that could hold back Ripple’s price
- Even though Ripple has an impressive list of partners that are trying its technology, it still hasn’t achieved widespread adoption among banks, that will feed on the uncertainty regarding XRP’s price.
- As XRP has a large supply, traders will want to be cautious as the coin might readjust itself after a rise. Ripple’s price tends to be more stable in comparison to other digital assets, as it was created to serve more for corporate use instead of individual use. This might deter traders from choosing the coin, as no significant profits can be made if fluctuations are negligible.
- The price can also be influenced by the total supply of XRP, as it changes when more tokens are released.
Can XRP reach the $3-dollar mark by the end of the year?
Considering all the above-mentioned factors, many experts from the crypto field from different sources, such as fxstreet, express.co.uk, investingpr, made their own Ripple price prediction, in which they stated that XRP can triple its value or reach a value of $3-$5 by the end of the year.
Investing Haven, a site focused on investment tools and crypto analysis, has a very optimistic Ripple price prediction based on their charts:
“As a base case forecast, we see Ripple’s XRP price rising to the top of its long term rising channel. This coincides with a price forecast of $20. We derived this based on fundamental and chart analysis combined.”
This would signify an increase in the price of 5300%, which is not a feasible appreciation for most of the other financial markets. But the crypto markets are very different from the traditional markets, having incredible price swings in just one day. Their arguments, that back up this bold Ripple price prediction, are summarized in the following phrase: “Ripple is the Blockchain or crypto company with the highest potential in the world.”
Smartereum, a platform which focuses on crypto predictions, has a more realistic approach for 2019’s Ripple price change, also estimating that the coin might reach a $3 threshold. As more institutional investors and companies will use Ripple to digitize the transfer of monetary funds, there is plenty of growing potential for this financial network, which makes XRP one of the best cryptos to invest in 2019.
Coinswitch made of more conservative Ripple price prediction:
“If these advancements take place, then XRP might reach $1.20 by the end of 2019, to be conservative. At most, it might even reach $2.”
The advancements in this case are the factors that were discussed earlier, the announcement of the convergence of technology solutions into one stack, which means an application more dedicated to business use cases. The Ripple price prediction of $1.2-$2 by the end of 2019 results in a price increase of 225%-440% compared to today’s value of nearly $0.31.
It remains to be seen whether Ripple/XRP is able to reach and top its highest value of $ 3.84, taking into consideration that the crypto market is highly volatile, any digital asset, including XRP, can fall from a promising upward trajectory. If you are looking to buy or sell XRP, we hope that our article regarding Ripple price prediction has been of help to you.
Featured image: Smartereum