No other coin has sparked as much controversy in the crypto market as XRP. Since its minting, the highest value of XRP was achieved in 2018, when it hit the $3.92 mark. The bullish trend was eventually stopped by the SEC creating external law drama that diminished the price of the token.
Now we are in the endgame, where this year, the lawsuit will have its conclusion. All experts are predicting that the outcome will be positive for Ripple. This opens the way for a possible bullish trend. But, there are other things to be reconsidered.
Possible Challenges and Risks
There is no magic ball that can predict cryptocurrencies' price - because crypto investing, as always, has been a risky business, regardless of the level of investor experience. Ripple is no exception to this rule, even though many factors are in favor of XRP reaching $1, the risk of failure is still out there.
The market’s fluctuation is normally influenced by a variety of factors such as government policies, technological innovations, the mood of majority investors, and of course speculation and expectations.
XRP is still haunted by the legal battles that are still ongoing, as the SEC's lawsuit against Ripple Labs for allegedly making $1.3 billion from an unregistered digital security offering is still a momentary setback for XRP’s price. A verdict against Ripple could have a huge negative impact on its growth. Also, the fierce competition from cryptocurrencies with a larger market presence might limit Ripple's growth potential.
Diversification and Patience
XRP deserves investor's attention, after all, it is a great asset that needs to be included in your portfolio and maintain its diversity. The initial reason why investors were attracted by this token, was its speed ( XRP Ledger can handle up to 3,400 transactions per second), is more eco-friendly (doesn’t require electricity for mining as it is already minted), and it is backed by a powerful company that plans to use this token with bank to bank transfers.
As with the growth cycle of any token, patience is essential. There will be many ups and downs along the way, but this is a natural phenomenon that happens all the time in the world of crypto.
Investing in XRP, like every investment in crypto and the stock markets, must be done with a safety plan in mind. Investing in other cryptos, diversifying your portfolio, can help mitigate risks. Newbie investors should be spreading their investments across other less volatile cryptocurrencies, so there is a balance between potential losses and gains, ensuring a more stable and resilient investment strategy.
Optimism for Ripple’s Future
It is possible for XRP to increase up to $1 by 2025, which means a 64% increase from today's prices. Several reasons back this prediction:
- Financial Partnerships: Ripple has established key partnerships with financial institutions for cross border payments, strengthening its position in international transactions. Backed by banks and financial institutions, Ripple’s XRP has a small advantage that Bitcoin and Ethereum lack at this moment, providing potential for widespread adoption and acceptance.
- Central Bank Digital Currency (CBDC) Projects: Some small economies are awaiting to see how Ripple’s lawsuit will end, because they are more than interested in creating their own CBDC backed by this token. Even though we are talking about small economies like Palau and Bhutan, big players like Columbia and Hong Kong have shown their interest. seen the potential of their token and technology.
- Adoption of Blockchain Technology: Blockchain technology is expanding, and the financial services are ready to fully embrace it. Ripple has proved its market presence in the finance tools area and according to professionals, RippleNet payments have seen a significant rise.
- Potential Legal Resolution: A positive outcome in the SEC lawsuit could regain investors' trust and boost their confidence. Additionally, a clear verdict could provide greater regulatory clarity for the entire cryptocurrency market.
Considering these factors, you might be seeking information on reliable platforms on where to buy XRP, as investing in this cryptocurrency is viable for both short-term and long-term strategies, despite its challenges and risks. In reality, after the dust has settled, XRP has the potential of gaining the status of Bitcoin and Ethereum, and surely will hit more than 1$ in the near future.
And, as we mentioned before, a diversified portfolio is your number one friend when it comes to crypto trading. In the end, follow the market, and follow your guts, because the situation around XRP is constantly changing and evolving.
