Ripple’s XRP had a particularly bullish year in 2021 as it is among the cryptocurrencies that deserve consideration for investment. TechTrends has put together a technical analysis on XRP Price Prediction for 2022.
In many minds, Ripple’s native token XRP is among the many cryptocurrencies that investors are looking forward to for a bullish run. As the interest in Central Bank Digital Currency (CBDC) is growing, Ripple has tried to be adopted through private ledgers and cross-border payments offered through its project called RippleNet. Recently, Morocco-Attijariwafa Bank has joined Ripple, forming a partnership to contribute to seamless payments to its customers with XRP. A question arises here as to whether events like these or others on the horizon would make XRP a good investment for 2022. Let’s learn about it in this TechTrends XRP Price Prediction for 2022 article.
XRP Price Prediction for 2022; What to Expect?
Cryptocurrencies are an emerging technology aiming to disrupt the future of many markets. Ripple, officially called XRP, is one of the cryptos that plan to shake up the entire cross-border payments industry. Ripple and Bitcoin goals may be the same in giving the users a chance to control their own assets, but when it comes to speed and the lowest fees, the two are quite different. Banks, who are Ripple’s main target customers, are attracted to these attributes of Ripple.
Before getting into XRP price prediction for 2022, it is worth starting with basic terms.
What is XRP?
The cryptocurrency that is used on RippleNet, which is a digital payment network, is XRP. The XRP Ledger is not based on a blockchain but on the zenith of the Ledger distributed database and it is open source. It is desirable due to its nature and consensus process. No mining is needed and the consensus process does not require multiple confirmations for immutability. This results in it being faster and more efficient in transactions compared to other cryptocurrencies.
This database has been developing in leaps and bounds these past few years with Bitcoin and Ethereum having consistent improvements in their price tendencies. At first, XRP was vulnerable but capable. Research has concentrated their study on Ripple (XRP) with great attention on the movement in price and sentiment is has been showing continually. The most significant and key characteristic of Ripple has been the fast and secure payment gateway. It is completely customer-oriented as it has not allowed the interference of any encumbrances of government or other financial institutions.
Technical Aspects of Ripple (XRP)
In this section of the XRP price prediction for 2022 article, we go through the technical aspects of Ripple. In the XRP Ledger, transactions happen within 3-5 seconds. This is different from the Bitcoin blockchain, where mining fees before the transaction is completed are high because of its proof-of-work (PoW) mechanism.
Banks, universities, individuals, private payment providers, and cryptocurrency exchanges are Ripple node validators. Moreover, XRP will not authorize users to spend the same number of cryptos on more than two occasions. The reason behind it is the system initially finds the transaction and removes all the subsequent data.
In addition, gateways are where the Ripple operation happens. The gateway acts as an intermediary in the chain of trust between two parties who aim to complete a transaction. In other words, the gateways are banks. Besides, Ripple’s architecture is the same as the SWIFT’s, which is the current standard for international bank wires.
Ripple In 2021 and the History of XRP
Before we start with XRP price prediction for 2022, we go back to the year 2004 when Ripple founds its foothold by Ryan Fugger who started the Ripple Payment Network first. In 2012, Jed McCaleb and Chris Larson took over the reign of this Payment Gateway project. In that same year, Ripple made ripples!
The XRP Ledger was originally called “Ripple” because of the way it allowed payment to ripple through hops and currencies. The creators named “XRP” from “ripple” and the X refers to non-national currencies in the ISO 4217 standard. The company labeled itself as “Ripple Labs”. In 2018, to prevent confusion the name changed to what it is today and the native coin is called XRP.
Ripple enjoyed a breakout in 2020 but came to a brick wall when a lawsuit was formed by the SEC, resulting in negative news. The chief US regulator believes that these tokens are unregistered securities and the company has broken the law by giving investors in the United States unregistered securities. Most cryptocurrency exchanges then delisted XRP which could result in its struggle in the long term. However, after Ripple won access to SEC’s internal documents, it showed a tremendous price surge and even crossed the $1 price mark. Notwithstanding the regulatory challenges put forward, the technical on the asset’s chart is bullish. It is still doing well despite the problems with regulators. However, it has yet to make its all-time high like other digital assets.
In January 2021, XRP fell from a previous year high of $0.7872 to a low $0.2108. In April, courtesy of help from the broader market, this digital currency struck a 2021 high of $1.9660 before coming down to $0.50.
Ripple (XRP) Current Market Status
At the time of writing this Ripple price prediction for 2022, XRP trades at $0.604280 USD with a 24-hour trading volume of $3,292,973,149 USD. In the last 24 hours, XRP came down 12.67%.
The current CoinMarketCap ranking of XRP is 8, with a market cap of $28,846,477,310 USD. It has a current circulating supply of 47,736,918,345 XRP coins and a max. supply of 100,000,000,000 XRP coins. The top cryptocurrency exchanges for this digital asset are Binance, Huobi Global, OKEx, FTX, Gate.io, Kraken, and Mandala Exchange.
Now, let’s jump into the XRP price prediction for 2022 and beyond.
Ripple (XRP) Price Prediction: 2022-2025
Most experts blame Ripple for the spark token airdrop that happened recently. Therefore, many investors sold their assets to enter other main ones such as Bitcoin and Ethereum. Most traders then came up with the question as to whether XRP is a good investment compared to BTC or ETH. Ripple is better investment advice due to the fact that it has suffered minor losses in comparison with cryptos like Bitcoin and Ethereum.
Being well-known for its bank-to-bank transfer mechanism that enables cross-border transfer, Ripple has attracted a lot of attention. With partnerships and alliances growing, a lot can be expected from the future of XRP in 2022 and beyond.
Roman Guelfi, who is one of the top investors and an ardent crypto enthusiast and expert, made the most influential XRP price prediction for 2022 and years to come: “Ripple (XRP) price may achieve bigger milestones in the years to come. As the market starts observing huge invasion & level of risk of projects, other cryptocurrencies may take a step back and XRP/USD price will sway above all.”
XRP Price Prediction for 2022
Although all price predictions are questionable due to the struggles the company is going through. Depending on the outcome of the lawsuit against Ripple, the market can be bullish in the year ahead. It has been supported by some leading institutions and partnerships, which can result in a tremendous improvement by the end of 2022. It may even lead to XRP crossing its all-time high price of $3.84.
By the beginning of February 2022, XRP price may reach $0.72 and $0.75 at the end of the month. The same way of development can happen in March, but predictions say it will not cross $0.76 until the month ends. Predictions even suggest that it may creep up slowly and reach the $1 mark by the end of August, all depending on the outcome of the court cases against Ripple.
Ripple Price Prediction for 2023
As per our Ripple price prediction, there might be a price improvement in 2023. It is predicted to reach somewhere around $1.70 or even its all-time high of $4 with partnership and a lot of advancement in their plans. Although this price is quite optimistic, it is feasible for the future.
Ripple Price Prediction 2024
Based on our predictions for XRP and technical analysis, XRP may reach an amount of $2.2 in 2024. As this year was built to replace many of the fiat currencies and should XRP be adopted, the asset might show a bull run and its price may skyrocket in the years to come.
Ripple Price Prediction 2025
Four years is a long time to predict the price of a coin in a volatile market like cryptocurrency. However, considering the support level for Ripple technology, XRP has been looked at as a bright game for optimism, with a predicted value of within the $4-$8 vicinity. It can be a record level. The wisest and most workable idea, however, is to think of a midpoint in these price levels, which is about $6. Should there be mass adoption of XRP, the future of this digital asset can be affordable and convenient.
Factors Affecting Ripple’s (XRP) Price
One of the best features of the cryptocurrency market is that each digital asset is influenced by almost similar factors. This results in easier trader life. You should remember the main concepts in order to forecast crypto prices in the future.
Development of the Technology
It is clear that with improvement in technology, the coin will have a future, which is why investors put their funds into the asset.
According to the data of CoinMarketCap, XRP was valued at $0.23 on November 1, 2020. However, it went up to $0.76 by November 24. This new record of unique addresses transacting in XRP affected the price rise.
Ripple is said to be SWIFT technology replacement. Should it come closer to its purpose, it will result in an appreciation of XRP.
Regulation
Ripple is working with big financial institutions; however, there are some regulatory issues that influence its price. For example, the case filed by SEC on December 2020 for selling XRP illegally in order to gain more funds. Then, the token’s value crashed from $0.4457 (open) to $0.26 (close); to a lowest value of $0.2098.
Agreements
Specifically considering Ripple, you should notice new agreements with banks and organizations. The reason behind Ripple’s popularity are banks that accepted its technology notwithstanding the various attitudes to the digital world.
In August 2020, India’s largest bank HDFC Bank Limited joined RippleNet. A few months later, Ripple collaborated with Bank of America, which is the second-biggest bank in the U.S.
This factor affects the rise in XRP’s price, but the effects are rather short-term.
Investors’ Mood
The sentiment of investors shows when they monitor the price prediction and check the key coin holders’ actions. If a holder of a large part of the coins sells them, the price drops. In April 2020, Ripple co-founder Jed McCaleb sold 54 million Ripples, causing a drop in the price of XRP.
Market Sentiment
It is not important how outstanding the technology is or how many investors believe in the coin’s success. The crypto price will drop if the main market trend is bearish.
Although digital currencies have been around for a long time, there are countries that have yet to accept it as a means of payment. If there are more regulations, the market depreciates. When other coins fall, you cannot expect a rise in your crypto.
Final Thoughts
Going through the XRP price prediction for 2022, we came to see that the SEC has definitely had an impact on Ripple. XRP, which hardly suffers high volatility, experienced a plunge that affects its future price. The outcome of the lawsuit will determine its future. If everything goes right, then the value of the token will increase. A positive outcome will even ensure the strength of Ripple and you can purchase the token at lows. However, if the worst happens, Ripple may be at risk.
Aside from all of these, analysts see a bight 2022, given the developments happening within the XRP ecosystem, and the crypto market in general.
This article aimed to predict the future of XRP in 2022 and beyond for those interested in investing or trading it. It is necessary to know all the facts and forecasts before making your own judgment.