At the turn of 2017 and 2018, the Ripple cryptocurrency made a dizzying jerk, briefly becoming the second most capitalized cryptocurrency in the world after bitcoin. This was followed by a long and painful decline in the rate and volume of XRP capitalization. The fall was on average even deeper than the general subsidence of cryptocurrency capitalization.
What is Ripple's forecast for the near future and for the long term? Let's get it together.
- Ripple Prediction for 2020
- XRP Cryptocurrency as an Everyday Means of Payment
- Ripple Prediction: Favorable Options and Not so
- Ripple: Not So Simple
Ripple Prediction for 2020
According to a recent Ripple report, the company sold only $ 13 million in XRP tokens in the last quarter of 2019, which is 80% less than the previous similar period. It involuntarily suggests that sales are so reduced, since the rate is expected to rise to values at which it will be much more profitable to do so.
In favor of a likely increase in XRP also says the news that the head of Ripple hinted at the possibility of an IPO of the company this year. And fans of the project are already looking forward to an unprecedented increase in the rate in case it really happens.
True, this news can be viewed from a different angle. For example, a decrease in XRP sales could happen due to the banal lack of interested buyers. In addition, to enter the IPO, you need to file financial statements to show future investors their success. And a significant decrease in token sales in this case will not be a positive thing. Consequently, this event will not necessarily be of help for “to the Moon” Ripple.
Nevertheless, you can bet even on a small increase in XRP, as, for example, recently recommended by Davincij15. Despite the generally negative attitude towards Ripple due to its service to banks, he believes that at this coin you can at least double the deposit. As arguments, Davinci cites the current low price, entering the TOP-3 cryptocurrency rating and strong marketing of the company.
Also, as of the time of writing an article (February 2020), shopping recommendations are provided by the consolidated technical analysis of Tradingview.com. He points to sales signals for Ripple by oscillator, but recommends buying by statistics and actively buying based on data from moving averages.
For more details about the prospects Ripple (XRP) described in the video:
XRP Cryptocurrency as an Everyday Means of Payment
There is a widespread belief that the Ripple cryptocurrency is a means of payment created primarily for bankers and financiers. Such an image at a certain stage was supported by the company Ripple Labs Inc. However, Ripple is rapidly moving beyond just a cheap means of cross-border money transfer, becoming a full-fledged means of payment.
Already at the moment there are ample opportunities to pay XRP in online stores (for example, Coinhost and TorGuard, or even in Bitcoin Superstore, which at the same time allows you to pay for purchases via XRP in Internet giants such as Amazon, Google Express and eBay) or book hotel rooms and flights.
We are developing ways to integrate Ripple into the gaming and legal fields. In March 2019, a program was created to integrate XRP into the e-commerce plugin WooCommerce.
Given that this payment plugin is used in more than 3 million online stores, operating on the WordPress platform — such integration creates brilliant prospects for the implementation of XRP as a full-fledged payment tool and the subsequent increase in demand for this cryptocurrency.
Ripple Prediction: Favorable Options and Not so
In early 2019, the Japanese Internet giant GMO, the crypto exchange operator GMO Coin, published the results of its survey, which was conducted from January 30 to February 20, 2019. (In this period Ripple course the flat at around $ 0.31).
The survey involved 10 964 people. Approximately 50% of respondents were sure that the XRP rate will increase in 2019. Of course, such surveys are not an expert assessment and in themselves do not guarantee the growth of the cost of XRP, and therefore should not be taken as a favorable Ripple prediction, however, they fully reflect the mood of participants in the cryptocurrency market.
After several months, the expectations of the bullish forecast participants came true - at the end of June the cost of XRP rose above $ 0.45, and at the moment reached $ 0.5. However, then, until the end of the year, the token exchange rate steadily decreased, and the bottom was found only at the level of $ 0.18. Thus, in the long run, the prediction was erroneous.
According to analysts from the independent rating agency Weiss Ratings, Ripple has a pretty rosy future.
“If he (XRP) manages to reduce the market share of SWIFT or even replace it in some areas, that is, the probability that XRP as a result of this will become the first cryptocurrency by value ”
Based on this, individual Internet analysts even made Ripple prediction in favor of growth to $ 150, $ 250, or even $ 500 during the year, but at the moment, such statements look completely frivolous.
Do not forget that there is also a negative outlook for Ripple. So Walletinvestor.com gives a negative long-term prediction for XRP for the current year and the coming years, predicting only a small and short-term surge in prices in 2020.
Based on the two-year Ripple course chart, it can be clearly seen that after a long fall since the beginning of 2018, the price of XRP has gained some dynamic balance and stability, which may become the basis for a positive Ripple price prediction.
According to some analysts, for example, Anki Faget, this situation may persist for 2019 or even longer. At the same time, it is worth considering the close connection with the successes of bitcoin and the cryptocurrency market as a whole, which most altcoins demonstrate.
In the graph below, you can see that the global trends of growth and fall of Ripple in one way or another repeated similar trends for BTC, however, since the spring of 2019, something went wrong — I did not even try to repeat the growth cycle of the main cryptocurrency XRP.
In case the cryptocurrency market globally goes up, XRP, as the cryptocurrency of the three currencies with the highest capitalization, which is a popular means of payment and a potential alternative to SWIFT — will be very good growth prospects.
Ripple: Not So Simple
There are also risk factors that may not allow the bullish scenario to materialize. Let's identify these factors. The first and main risk factor for XRP is the development of projects similar to it, which exist in the same economic niche and perform similar functions.
Firstly, this is Stellar, which was originally a fork of Ripple and has all its technical advantages, but at the same time does not contain a number of its shortcomings. And although at the moment, by the degree of introduction as a means of payment, XRP is ahead of its main competitor Stellar, the prolongation of this situation in the future remains in doubt.
Another potentially dangerous competitor to Ripple is the digital currencies of individual banks. So far, only financial holding JPMorgan has taken such a step by creating its stablecoin — JPM Coin.
According to BloombergTV editor Joe Weisenthal:
“If the blockchain / coin framework turns out to be good for money transfer banks, then JPM Coin will definitely destroy Ripple”
Some traders agree with Weisenthal, for example, WhalePanda:
However, a number of analysts, including Tian Fourier, consider this prospect unlikely, and digital currencies of individual banking institutions — an idea devoid of any meaning.
In addition, even if Ripple products will be massively used in the banking sector, this will not mean an unconditional increase in the XRP rate. Firstly, it is more profitable for banks to transfer funds in a currency with a stable exchange rate. And secondly, the coin has not responded to positive news from this area for more than six months now.
As an example, recall the information voiced by Vice President of American Express last summer about the use of xCurrent (one of Riple's solutions). This news did not help XRP in the growth rate, quite the contrary — after it went down.
The same thing happened with rumors about the purchase of the international payment operator MoneyGram. In fact, it turned out that Ripple acquired a 10% stake in a company that uses XRP in the same number of transactions between the US and Mexico. But in the end, none of the news had a positive effect on the value of this cryptocurrency.
Another potential risk that could make Ripple's forecast negative is the pending litigation.
A California Northern District court earlier dismissed a class action lawsuit against Ripple Labs Inc. However, the case is currently referred to the US Federal Court and has not yet been completed. There is no need to explain that a court decision in favor of the plaintiffs and in favor of Ripple Labs Inc can significantly affect the fluctuations in the rate of this cryptocurrency.
From all of the above, a simple conclusion can be made — the Ripple cryptocurrency has prospects. XRP has a good technical base and potentially wide scope.
Potentially, the growth prospect of XRP is associated with further implementation as a means of payment, as well as the ongoing development of the cryptocurrency market and the growth of its capitalization. At the same time, investors should definitely not let things go by chance and carefully monitor changes in the situation on the cryptocurrency market.