XRP Price Prediction: Will Ripple Make Waves? (2024)

To better understand a project’s potential, looking to the past for trends and indicators that can offer guidance can be helpful. Incredible highs, steep falls, and long periods of steady decline mark XRP’s journey so far.

The project launched its token in 2013 but saw little significant price action until the bull run of 2017. However, after this period, listings on popular exchanges became pivotal to the coin’s considerable price rises.

“The history of XRP cryptocurrency listings begins in 2018, a pivotal year for Ripple (the company behind XRP),” Drozdz tells us. Ripple’s launch of the xRapid product was a defining moment, ushering in a new era where XRP cryptocurrency aimed to revolutionise money transfer, including within the banking system. The response from the market was nothing short of phenomenal.

“Within a very short time, the price of XRP skyrocketed by as much as 1820%,” Drozdz elaborates. From a humble US$0.2, XRP soared to US$3.84, an all-time high that naturally thrilled investors. However, as Drozdz notes, this jubilation was short-lived. “The cryptocurrency then fell by 93% in a matter of months, leaving a stark reminder of the volatile nature of the crypto world.”

But XRP wasn’t finished. In 2021, as the entire cryptocurrency market was caught in a bull market frenzy, XRP again provided significant returns to investors who got in at the right time. Drozdz recounts: “Within six months, the cryptocurrency had increased by an impressive 710% to US$1.96” Yet the following period was a steady downward trend, as XRP’s value gradually declined to US$0.3.

Ripple has been engaged in a multi-year legal battle with the US Securities and Exchange Commission (SEC) which has impacted the price of XRP for the past few years. Recently, Ripple has been on a winning streak against the securities watchdog.

The first win, despite only being a partial victory, occurred when a judge ruled that Ripple had not violated existing securities laws by selling XRP to exchanges for retail investors. However, it did break the law by selling directly to institutional investors. This first victory caused XRP to soar over 80% in price overnight.

The second win came when a judge blocked the SEC’s attempt to appeal the ruling, again causing positive price action for XRP. The third win came in October when the SEC dismissed its own case against the CEO and executive chairman of the company. As of 14 December 2023, XRP sits at US$0.62 with a market capitalisation of $US33.7 billion.

Indeed, the history of XRP’s price gives a window into the volatile, dynamic, and often unpredictable world of cryptocurrencies. As Drozdz points out, the past may not necessarily predict the future, but it can offer valuable insights to help guide investment decisions.

Related: Bitcoin Price Prediction

Many investors are wondering about the future after Ripple’s recent winning streak against the SEC. The most significant victory, despite being only a partial win, was the court ruling that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts, while the institutional sale of the tokens did violate federal securities laws.

What do the final few weeks of 2023 hold for this cryptocurrency? As with any attempt at predicting the future, the answer isn’t all that clear.

“The partial resolution of the dispute with the US Securities and Exchange Commission (SEC) could potentially spur growth for XRP in the near future,” explains Drozdz. This legal battle has been a significant factor in XRP’s performance, with developments closely watched by investors and the wider crypto community.

Yet, Drozdz tempers his optimism with a note of caution. “The dispute has not yet been fully resolved,” Drozdz emphasises. “While the recent developments are certainly encouraging, we cannot be completely certain about XRP’s future trajectory.”

Understanding the correlation between legal resolutions and market performance is crucial. If the dispute with the SEC reaches a favourable final conclusion, it’s reasonable to anticipate that investor interest in XRP could spike. This would likely fuel new growth and potentially lead to an uptick in its price.

Looking into 2024, many investors are hoping that Ripple continues its winning spree against the SEC, and that the global economic conditions turn more favourable for crypto assets like XRP.

However, it’s important to remember, as Drozdz points out, that such projections are just that—projections. They offer a potential path for XRP’s performance in 2023, and beyond, but do not provide a definitive guarantee. Much hinges on the outcome of the SEC dispute and how the crypto market fares in the coming months.

Forecasting the future of any cryptocurrency can be like trying to predict the weather: many variables are at play, some predictable, others less so.

Over the years, many price predictions have been made regarding XRP. Crypto hedge fund manager, Thomas Kralow, previously predicted that XRP would hit US$30 a coin in 2023. This prediction fails to consider the mathematical improbability of XRP reaching this price, as the total supply of 100 billion coins means the project’s market cap would be $US3 trillion dollars. That is more than double the current market cap of all cryptocurrencies combined.

To avoid the sensationalist views often provided by XRP fanatics, Drozdz provides a balanced insight into two scenarios: a bullish outlook, driven by increased popularity and positive legal outcomes, and a bearish view, potentially impacted by declining interest, token design and broader market sell-offs.

The Bull Case

“Cryptocurrencies, in general, are driven largely by news, popularity, and in the case of XRP, court decisions,” says Drozdz. These currencies lack intrinsic value, like physical assets or cash flows. Therefore, their value largely depends on the sentiment of investors.

The recent winning streak against the SEC has already created a ripple effect, pardon the pun, on its price. “This positivity around XRP is a reaction to the current court ruling, which seems to be impacting its growth,” observes Drozdz. However, the trend back to the baseline price before the ruling indicates that the market thinks the project might not be out of the woods just yet.

Further favourable rulings and developments related to the ongoing litigation could boost XRP’s price, but whether the price will stay high or fall afterwards is yet to be seen.

Beyond the legal realm, the general state of the cryptocurrency market can significantly impact XRP. Drozdz notes, “A large-scale upswing in the crypto world could be a boon for XRP. If other cryptocurrencies rise, XRP could well ride the wave.”

The Bear Case

However, not all potential scenarios are rosy. The resolution of the ongoing litigation could, paradoxically, lead to a decline in XRP’s price. Drozdz explains, “Once the excitement around the lawsuit fades, we could see a drop in interest for XRP. That could, in the medium term, negatively impact its price.”

While the price currently remains above the level the token was at prior to the ruling, if XRP continues on the trend, it won’t be long before it drops to a new low.

The broader market also presents possible challenges. If a significant sell-off in the cryptocurrency market occurs, this could also depress the value of XRP. “Just as XRP can benefit from a bull market, it’s susceptible to bearish trends in the wider cryptocurrency space,” Drozdz cautions.

There are also concerns about using XRP in Ripple’s cross-border payment system. The currency is largely redundant and potentially isn’t necessary for the payments system to function. Even if XRP is used to settle payments, the value of XRP does not affect the system’s functionality, as the payments are settled in fiat value. This means that the payment can still be sent as usual whether XRP is $1 or 1 cent, providing little incentive for positive price action.

For this reason, it is easier to perceive long-term value accrual with a significant improvement to the token’s design and utility in the system.

Investing in cryptocurrencies, including XRP, isn’t a decision to be taken lightly. As Drozdz notes, while current events suggest a positive outlook for XRP, particularly with the possibility of a new bull market in cryptocurrencies, inherent risks are involved.

“There could be an increased interest in XRP in the near future, which could drive a new uptrend,” Drozdz says. This forecast and the potential resolution of the ongoing litigation could place XRP in a favourable light for potential investors.

However, the world of cryptocurrencies is known for its wild swings and unpredictability. Drozdz adds a note of caution: “Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market.”

This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully. As Drozdz reminds us, while the potential for high returns is attractive, the possibility of significant losses is real and should not be overlooked.

“Investment decisions should be made with a clear understanding of the risks involved,” Drozdz says. “For some, XRP could present an exciting opportunity. For others, it may not align with their risk appetite or investment strategy.”

However, erring on the side of caution is always recommended.

“In the world of cryptocurrency, a dash of caution is always wise. Keep a keen eye on the developments surrounding XRP and make informed decisions based on the evolving landscape.”

Whether XRP is a good investment depends mainly on an individual’s financial situation, risk tolerance, and investment goals. As always, it’s imperative to do thorough research and consider seeking advice from a financial advisor before diving into cryptocurrency of any kind.

This article is not an endorsem*nt of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.