There have been hundreds of Bitcoin obituaries. Here are 3 reasons why this XRP obituary will age just as poorly.
Earlier this month, an article appeared sowing doubt about XRP’s price on the popular investing website, The Motley Fool.
But XRP holders and altcoin investors may not have to worry based on what the article says. In fact, its claims are easy for the average crypto trader to debunk by “doing your own research.”
The article claims XRP will be worth less than $1 in 5 years. This is not, however, at all in line with XRP tokens’ historical price trend.
Here are three reasons why.
Bitcoin Cycle Price Ratchet
The article’s first reason for FUDing XRP’s price is:
“XRP is down more than 60% from its July high.”
This has happened before to XRP and to Bitcoin, and it will probably happen again.
Massive corrections in the high-tech space are normal because swift rallies that overheat these assets and drive their prices to new highs are normal.
Even the Nasdaq Composite, which tracks US tech stocks, fell 80% after the Dot-Com bubble in the early 2000s. Cryptocurrencies are no different.
XRP’s price has fallen so far since the last Bitcoin all-time high price last year because it pumped so high in the first place.
There are many reasons altcoin investors believe it will pump even higher on the next macro cycle rally.
XRP Price Fundamentals
The Motley Fool article goes on to say:
“The long-promised demand from banks using XRP for cross-border payments has never materialized.”
But this isn’t really a fair overview of Ripple’s usage in recent months.
In fact, XRP Ledger (XRPL) saw record activity by December last year. Moreover, by mid-March this year, XRPL saw the highest number of wallets ever.
So the demand for XRP tokens is certainly driven by the need to use its network to make payments. The fact-based fundamental analysis proves it.
Furthermore, in February, major Wall Street bank Goldman Sachs revealed that it held XRP tokens worth $153 million in crypto markets at the time.
But big banks like Goldman Sachs aren’t the only ones holding XRP. Even the U.S. government is planning to pile up Ripple tokens for its digital asset fund.
US Digital Asset Stockpile
The U.S. digital asset stockpile, signed into policy by President Donald Trump, names 5 cryptocurrencies— and XRP is one of them.
Now, it’s far from clear whether that order will materialize into something noteworthy in terms of creating a sustainable support for the price, but it’s a sign of acceptance, at least under the current administration.
The post This $1 XRP Price Prediction Is Wrong: Here’s Why (Opinion) appeared first on CryptoPotato.
