Source: PaxForex Premium Analytics Portal, Technical Insight
The digital currency commonly referred to as Ripple currently hovers just above the $0.50 per token mark. Although it briefly surpassed $1 in the summer of 2021, its historical peak was a rapid surge to $3.84 three years prior.
Despite being the functional token of the RippleNet international-payments network, it generally maintains a value well below the one-dollar threshold. The question arises for Ripple investors: Is a gradual price increase expected over the coming years, or could it potentially reach $5 in the near future?
In summary, most envision a positive future for Ripple and its token holders. However, anticipating substantial price surges in 2024 would be impractical, and setting a target of $5 for the next few years seems unrealistic. The true wealth-building potential lies in the long term, as RippleNet expands its reach to more countries and gains wider adoption.
This optimism comes with a caveat, acknowledging potential challenges that could hinder Ripple's trajectory:
- The ongoing lawsuit with the Securities and Exchange Commission (SEC) remains a significant legal hurdle, and its outcome may not be favorable for the Ripple community. Regulatory obstacles from authorities in different markets could further complicate matters.
- Ripple's centralized architecture, with Ripple Labs as the initiator of the blockchain network, poses risks. A decentralized system driven by the community offers advantages such as enhanced data security and swifter decision-making, a model embraced by crypto giants like Ethereum (ETH) and Bitcoin (BTC), but not Ripple.
- Competition from other cryptocurrencies could outperform RippleNet in transaction-focused operations, offering cheaper and faster transactions, heightened security, or innovative features.
Exploring the potential drivers for long-term growth in Ripple's value, it's essential to consider the positive factors that could shape its future trajectory.
Ripple's prolonged legal battle with the SEC is entering a crucial phase after a four-year journey. This development offers a ray of hope for XRP enthusiasts, potentially acting as a game-changer by alleviating the regulatory uncertainties surrounding Ripple. Such a shift could reignite investor interest and confidence.
Simultaneously, RippleNet's expansive reach is undeniably noteworthy, with a rapid inclusion of banks and financial institutions. The system's footprint spans across more than 70 geographical markets, representing approximately 90% of the global border-crossing transaction market.
XRP's emerging role as a preferred liquidity provider in international transactions might lead to increased demand and value. By connecting a company's crypto-based assets, such as Bitcoin or Ethereum, to the RippleNet payment service, XRP facilitates crypto-denominated loans, streamlining and expediting the transaction process. Although the liquidity service is currently available in select US states and a few countries, Ripple has ambitious plans for global expansion.
Furthermore, Ripple is actively involved in the exploration of central bank digital currencies (CBDCs) globally. Initiatives are already underway, with the development of digital-currency systems for smaller nations like Palau and Bhutan. Larger CBDC partnerships are in progress, with notable collaborations in Hong Kong and Colombia.
While acknowledging the regulatory challenges and potential threats, Ripple's forward-thinking approach positions it as a catalyst for financial innovation. While there's no guarantee of an immediate tenfold increase in token price, a $5 target seems plausible in the long run. This projection is contingent on the maturation of the global crypto market and the continued adoption of RippleNet in various local markets.
Investors must remain vigilant regarding the previously outlined risks and maintain a sensible investment size to mitigate potential losses. While the $5 target may take several years to materialize, a measured approach ensures a smoother journey through Ripple's evolving landscape.
GBP/CHF,D1
As long as the price is above 0.4800, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 0.5187
- Take Profit 1: 0.5800
- Take Profit 2: 0.6200
Alternative scenario:
If the level of 0.4800 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 0.4800
- Take profit 1: 0.4500
- Take profit 2: 0.4200
