- Despite a recent price drop, analysts predict a significant rise in XRP’s value, with some forecasting record highs.
- Indicators like increased XRP transactions and wallet numbers suggest growing adoption.
- However, a bearish perspective exists, with predictions of a substantial price fall due to regulatory challenges.
Will the XRP Army Cheer This Year?
Despite recording impressive price spikes in 2023 and giving investors fresh hopes for a massive bull run, Ripple’s XRP has recently struggled. Currently, it trades at around $0.59 (per CoinGecko’s data), or a 5% decrease on a monthly basis.
Still, numerous analysts believe the negative trend would not last long, envisioning substantial gains within the following months. The X (Twitter) user EGRAG CRYPTO predicted that XRP could rise to an all-time high of $5 in the next 90 days, “marking the initial wave of a prolonged bull market, one that’s likely to span several months.”
The analyst laid out another forecast earlier this week, according to which the coin’s value might jump to the ridiculous $220. It is worth mentioning that such a scenario is improbable due to the multi-trillion market capitalization that XRP needs to reach. Recall that the market cap of the entire industry stood at “just” $3 trillion during the bull run in 2021.
Dark Defender and JackTheRippler also predicted astronomical peaks for XRP. The former claimed that the cryptocurrency market capitalization could skyrocket above $23 trillion within a year, with Ripple’s token soaring to $13.72. The latter forecasted a price ascent to $100.
Linda P. Jones touched upon the topic, too, without giving an exact prediction. According to her, XRP would be positively impacted by a series of upcoming events this year, including a possible settlement between Ripple and the United States Securities and Exchange Commission (SEC), the Bitcoin halving, a potential rise in institutional adoption, and more.
Observing On-Chain Metrics
The rising number of XRP transactions in the past several days coincides with the bullish forecasts. The figure has stood at well above 4 million since the start of the new year.
In addition, the asset reached a major milestone, with the number of XRP wallets surpassing the 5 million mark. The development indicates a growing user base and wider adoption, which might fuel additional investor confidence and a price rally.
What About a Bearish Scenario?
The analyst on TradingView – Bitgolder – does not share the optimistic stance of the aforementioned people. He claimed that the SEC would most probably win the case against Ripple, which would result in a severe crash for XRP’s price to as low as $0.07:
“It looks like XRP is going to dump hard down to single digit pennies in the not too distant future.
What will cause this sort of drop you may ask? Well probably the obvious that the SEC will get their way as they always do and XRP will be considered an unregistered security or another lawsuit and people holding get impatient and dump. Who knows, all I know is that its about to tank.”