Source: PaxForex Premium Analytics Portal, Technical Insight
The widely recognized cryptocurrency, Ripple, has experienced a significant decline of over 10% in the past week, currently trading at $0.58 per token. This value is notably lower than the brief peaks it reached in 2021 and 2018, hovering around $2 and $3, respectively. Despite positive developments in Ripple's ongoing legal battles and a gradual improvement in the overall cryptocurrency market sentiment, Ripple's crypto winter persists.
Amidst this scenario, there arises a pivotal question: Is now an opportune moment to acquire XRP at a discounted price, anticipating a potential breakout? Conversely, should investors exercise caution, fearing darker days for this cross-border payments cryptocurrency?
The primary focus for XRP investors remains on the resolution of the lawsuit initiated by the US Securities and Exchange Commission (SEC) nearly three years ago. The SEC alleges that Ripple Labs and its executives conducted a $1.3 billion unregistered securities offering. This legal stance positions XRP, the core crypto token within the broader Ripple payments network, as akin to a stock or bond, subject to the associated regulatory safeguards.
Recent developments in the case appear favorable for Ripple. Judge Analisa Torres ruled that selling XRP on a public crypto exchange does not constitute a securities offering but is more akin to trading foreign currencies. If this ruling withstands subsequent reviews and appeals, it could establish a precedent removing many cryptocurrencies from the SEC's jurisdiction, providing a potential boost for Ripple and XRP prices.
However, the lawsuit is only one facet of the narrative. The broader cryptocurrency market envisions substantial support from institutional investors as a key driver of future growth. If traditional banks and investment firms inject billions or trillions of dollars into blockchain assets, the value of major coins, including XRP, is expected to surge. XRP currently ranks as the fifth-largest digital coin by total market value.
Notably, analysts from Wells Fargo, a traditional banking giant, have speculated that Ripple's token could reach a value exceeding $500 in a next-generation global payments ecosystem. While these insights come from a business support manager rather than an official spokesperson or financial analyst, the notion of significant value arising from a more efficient international money transfer system is intriguing and aligns with the broader trend toward crypto adoption.
However, potential challenges loom for Ripple Labs, its payment network, and the XRP token. Several factors could derail their success:
- The ongoing lawsuit might take a turn favoring the SEC, either during the current proceedings or in the appeals process.
- Competing blockchain solutions, like Solana and Ethereum, could surpass Ripple as leaders in facilitating international payments. These platforms offer smart contracts that perform many of the functions provided by the Ripple network, and the emergence of a new, technologically superior option remains a possibility.
- While not asserting that the Ripple network is insecure, the potential risk of a security breach, resulting in the theft of digital assets from XRP holders, could cast doubt on Ripple's future business prospects.
Acknowledging these threats, it's essential to note that their likelihood of materializing in the short term appears low. Judge Torres' well-founded reasoning in her verdict minimizes the potential for surprises in the appeals court. Ripple's security measures, controlled by Ripple Labs, arguably exceed those of most cryptocurrencies, making significant hacking attempts more challenging, especially from within the organization.
While competition is ever-present, Ripple's specialization in a specific field enhances its resilience. While Ethereum may be more extensive, its blockchain system serves diverse purposes, whereas Ripple has established itself as a specialist in international payments.
In conclusion, the outlook appears promising. While no guarantees can be offered, Ripple's XRP token seems positioned for substantial returns from its current price. While Ms. Thorpe's suggested target of $500 per token by 2027 might seem ambitious, even a more modest gain could yield significant returns.
Considering these factors, it may be prudent to explore acquiring Ripple tokens while their value remains relatively low.
.GBP/CHF,D1
As long as the price is above 0.5700, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 0.6137
- Take Profit 1: 0.6500
- Take Profit 2: 0.7000
Alternative scenario:
If the level of 0.5700 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 0.5700
- Take profit 1: 0.5300
- Take profit 2: 0.5000
