- Ripple price analysis shows XRP has been testing the $0.30 resistance level but hasn’t gained enough support to break through, which could send the altcoin to new heights
- Ripple, the organization, is battling lawsuits that could threaten the company’s public image yet they’re still making strategic partnerships and transactions
- Investors are bullish on XRP’s long-term future based on signs of institutional adoption and XRP’s competitive edge, namely, Transactions-per-Second (TPS
At the time of this writing, Ripple (XRP) is trading at ~$0.25 with a market cap of $11,483,157,687 USD. In September, Tether (USDT) overtook XRP’s third ranking on Coin Market Cap, and the latter coin has been ranked fourth ever since. XRP has been one of the worst performers of 2020.
In this article, we’ll explain how XRP got to where it is today; what’s influencing its growth, and what the future holds for the altcoin.
Recent Price Action
For perspective, XRP reached an all-time high of $3.84 USD on January 4, 2018. Since then, the coin has been on a general downtrend, reaching an 52-week high of $0.34 back in February.
XRP took a tumble in response to the COVID-19 pandemic, also known as Black Thursday in the crypto world. The coin dropped below the $0.20 threshold for weeks until it broke through again.
XRP entered September nearing the $0.30 resistance level but couldn’t get enough support. Since then, XRP has traded within the $0.22 – $0.30 range. Ripple reached a low of ~$0.22 on September 23 and has experienced higher highs and lower lows.
Last week, Ripple failed to close the price at $0.26. Its 20-day EMA has been $0.24, and if the price breaks below that, then it’ll likely continue its range action, although constricted between $0.23 and $0.26.
If XRP rebounds off that EMA, the bulls will likely try to drive the price past the $0.26 resistance level. If that happens, it could signal the start of an uptrend towards $0.30. XRP reached $0.32 in August. The price action since that September 23 low gives a slight advantage to the bulls.
Ripple’s Public Image
One blemish that is likely influencing XRP’s price is the class-action lawsuit against Ripple (the organization) and CEO Brad Garlinghouse. In short, the lawsuit claims that XRP has no utility, and that Garlinghouse was regularly selling XRP even after he said he was holding the altcoin and his position was long; essentially misleading investors with bullish claims.
Garlinghouse’s lawyers did not double down and claim his statements were true. Instead, they argue that any claims about XRP’s utility could not be proven false.
Back in August, Ripple became the subject of another lawsuit, this time in Australia. New Payments Platform Australia (NPPA), a consortium that includes every significant bank in Australia, claims that Ripple infringed upon their intellectual property – the branding of the “PayID” payment standard – which Ripple unveiled in June.
These IP lawsuits are always tedious, and this one is no different. It comes down to patents, and more specifically, spelling.
While speaking at the LA Blockchain Summit in early October, Ripple co-founder Chris Larsen bemoaned US’s crypto regulatory framework and said the firm was considering relocating to a country with more crypto-friendly rules.
And in a sign of little confidence, Santandar, the large Spanish bank and one of Ripple’s major partners, has been hesitant to adopt XRP into its international pay network, One Pay FX. The company said that the coin was not actively traded enough in markets.
The bank is still using Ripple’s software for its cross-border payment solution, as Ripple clarified.
That said, there are a few positive signs for Ripple. First, the organization reached a $10 billion valuation in December 2019 after raising $200 million in an investment round. Ripple joins the likes of Coinbase and Binance as one of the eleven blockchain unicorns – a company valued at over $1 billion.
Garlinghouse also hinted at a possible IPO for the company, which could help attract retail investors and therefore, mass adoption of cryptocurrencies and blockchain. This move could also boost XRP’s price, although some XRP holders think the opposite if investors look to buy stock instead.
Garlinghouse noted that their On-Demand Liquidity (ODL) service, which uses XRP as a bridge between two currencies, has processed over $2 billion transactions to date. ODL’s volume increased by 11 times in the first half of 2020.
Back in August, Flare Networks announced details of a new bridge connecting XRP to the Ethereum blockchain; a sign that Ripple is inching closer to the DeFi space. Already a partner with Ripple, Flare Networks uses the Ethereum Virtual Machine to provide smart contracts on the Ripple network.
Overall, the Ripple network has been busy with ~900,000 transactions a day during 2020, hitting a high of 3 million transactions back in January.
Ripple Price Analysis: Predictions
XRP’s price predictions are heavily contingent on new partnerships and institutional adoption. Considering that Ripple works with over 300 financial institutions like American Express, investors are generally bullish on the altcoin’s future.
With these factors in mind, some bullish predictions include $20 and $22.79 by Investing Haven and UsLifted, respectively. The former notes that XRP will have a massive breakout if the coin can break through the $0.30 resistance level.
Crypterium thinks XRP could approach $1.50 by the end of 2020.
XRP has a competitive edge with its Transactions-per-Second (TPS) speed, which stands at 1500 TPS. For reference, Ethereum is at 15 TPS and Bitcoin is at 6 TPS. And XRP’s low price and large market capitalization might be attractive to small-time investors who can’t afford Ethereum or Bitcoin. XRP isn’t as volatile, either.
All things considered, and lawsuits aside, Ripple is in a great position to grow.