CRYPTO NEWS AGREGATOR
Thu, May 21, 2020 11:00 AM by Sumit Bera

Ripple (XRP) Price Analysis

xrp price analytics

Introduction

Ripple is a technology company offering a digital payment network RippleNetwork (also known as RippleNet). RippleNet is an open-source and peer-to-peer decentralized platform focused on fast and cheap operations with currency exchange. The platform is based on a distributed open-source protocol (RTXP) and supports XRP Ledger (blockchain technology that can settle transactions in 3-5 seconds). This system was released in 2012 by Jed McCaleb and built by Arthur Britto and David Schwartz. The internal cryptocurrency of the Ripple network is called XRP. XRP is used not only for payments and settlement but also for integration with banks and the ability to reduce transaction fees.

Achievements

As of the end of 2017, Ripple is among the top three cryptocurrencies by market capitalization, along with Bitcoin, Ethereum and others. The question is: what makes this currency so unique and what makes it successful on a market? 

Basically, one of the first advantages of XRP is its efficiency in terms of transaction time and energy consumption. For example, the transaction confirmation time in Ripple is 4 seconds, while for Ethereum this value exceeds 2 minutes, and for Bitcoin, it usually takes more than 1 hour. Also, XRP doesn’t utilize mining, thus it consumes much less energy compared to Bitcoin. 

It has a different underlying consensus mechanism than Bitcoin miners distribution but provides the same high level of security. XRP transaction fee is 10 times lower than that of the BTC. It’s around $0.000001.

In 2016 Ripple received BitLicense from the New York State Financial Services Division, making it the fourth company with such a license. In the same year, Ripple announced the creation of the first interbank group of international payments based on distributed financial technologies. In September 2018, the Ripple team announced the integration of RippleNet technology into the National Commercial Bank, located in Saudi Arabia and one of the largest banks in the Middle East. Also, as of April 2019, members of the network known as the Global Payments Management Group (GPSG) included Bank of America Merrill Lynch, Royal Bank of Canada, Santander, Standard Chartered, UniCredit, and Westpac Banking Corporation. 

Overall, Ripple is more famous as a payment system with its own features and numerous contracts with financial organizations, while XRP as a cryptocurrency is more of an addition and a medium of exchange on the Ripple platform. 

Statistics

The price of XRP has started to rise from its near-zero price in the middle of 2017 and reached its peak of around $3.77 at the beginning of 2018. Afterwards, its price has slowly started to decrease and fluctuate between $0.8 and $0.3. Due to the COVID-19 pandemic, the price of Ripple has dropped down to $0.14, but right now is on its way to recovering to the previous level. According to CoinMarketCap recently displayed data, 20/05/2020, Ripple (XRP) has the following characteristics, being ranked the third cryptocurrency by its market cap:

  • Current Price: $0.205531 USD
  • Market Cap: $9 066 544 517 USD
  • Volume (24 h): $1 848 231 419 USD
  • Circulating Supply: 44 112 853 111 XRP

Technical analysis

TradingView website gives a comprehensive technical analysis of the Ripple cryptocurrency and suggests what action needs to be taken with relation to it: Buy, Sell, or Neutral based on Oscillators and Moving averages indices. Most of the Oscillators indicate a Neutral action, however, 3 Oscillators state Sell action and only one of the-Buy. With regards to Moving averages, 9 of them display Sell action and only 7 state Buy. Overall, the Summary on the XRP/USD states that a Sell action is recommended towards the Ripple cryptocurrency. Below the table for Pivots indicators is displayed.

Price prediction

According to the Coinpredictor.io website and its price-based forecast algorithm, in 7 days the price of XRP will be targeting $0.3, but in one month the price will be decreasing by 10.3% and approaching $0.26. Looking at the 3-month forecast, the price of the XRP will reach a value of $0.267. Overall, in the long-term, the website forecasts that the Ripple will be dropping down in its price. 

30rates.com website and its prediction of the prices by day show that XRP will be dropping in price from $0.207 to $0.181 in two weeks’ time. However, after this drop, the price is likely to grow up to $0.214 in the middle of June.

With reference to Coinpedia XRP forecast, experts believe that under the successful implementation of advancements by the Ripple company “nothing on earth can stop Ripple from reaching the heights of $2 by the end of 2020”. 

Plans

Up until now, Ripple has largely interfered with the financial market, however, will it stay that successful in the future? Michael Novogratz, one of the most significant investors in the cryptocurrencies who successfully helped to launch the crypto bank and venture firm Galaxy Digital, claims the following: “The price of XRP will be determined like all prices. If there are more buyers than sellers (and the company has a lot of control here) the price will rise. The company needs to distribute in a rational way at the same time building a real and scalable use case. I hope they do.”

Also, Alex Cobb, one of the intensive investors in the XRP and social media influencers in the cryptocurrency world, states the following: “Remember, XRP always last, but it will pump the most. Patience.”

However, the Bloomberg Intelligence Senior Commodity Strategist, Mike McGlone, says that Ripple has a huge potential to enter the payment industry, but it's volatile and ever-changing nature of cryptocurrency might slow down the process of integration.

Disclaimer

This article doesn’t provide any advice and directions regarding the investments in particular cryptocurrencies and pursues only informative purposes.

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