XRP is a cryptocurrency developed by Ripple Labs, Inc. to source liquidity for international payments. Its primary users include banks and payment providers.
It was initially released in 2012 and was known as “OpenCoin” until 2015 when its name changed to “Ripple.” In 2018, the name changed a second time. Today, the term “Ripple” is used to refer to the company that produces the cryptocurrency called “XRP.”
Between Mar 9 and 11, 2019, the price of XRP has been suffering consistent price losses. It is currently trading within a downward facing parallel channel.
The price fell from a high of $0.325 on Mar 9 to lows under $0.313 on Mar 11 and 12. In our most recent price analysis for XRP, we predicted that price will continue to decrease at the rate predicted by the resistance and support channel.
Fundamental Analysis
From a fundamental perspective, Ripple (XRP) is still one of the most exciting competitors at the top of the cryptocurrency market. XRP is so fast and easy to use, mainly due to its unique consensus protocol, it has the undivided attention of banks and financial institutions worldwide.
Coinbase Listing and Emerging Controversy
XRP was recently listed on Coinbase Pro, with trading pairs against BTC, USD, and EUR. The listing thus far has had a very limited effect on the price. In the preceding days, the so-called “XRP Army” was responding to various accusations from all directions.
Questions and accusations of insider trading emerged. Furthermore, on Mar 1, an article by Jason Bloomberg in Forbes reported:
“The Ripple business model is a giant pump and dump scheme…[that] takes numerous steps to obscure this basic fact.”
With accusations of insider trading and allegations of pump and dump schemes now looming, Ripple’s reputation as a company is in jeopardy. While the XRP Army has contested the claims made by Bloomberg in Forbes, the news is still brewing.
Whether or not Ripple is using XRP to conduct pump and dump schemes is unknown. However, this graphic organizer created by Bloomberg does not appear to bode well for the company or the cryptocurrency:
Ripple Versus JP Morgan?
‘Competition’ has heated up for Ripple as the investing giant JPMorgan Chase & Co (NYSE:JPM) unveiled plans for an in-house instant payment settling ‘cryptocurrency’ which it has dubbed JPM Coin. It is unlikely that the two digital currencies would have much market interaction as JPM Coin aims to be a pegged stable coin used within its platform while XRP is a tradable asset for cross-border payments.
Regulated Ripple
(XRP) is unique to other crypto offerings in that it is regulated. This key difference has enabled the Ripple company to partner with traditional financial institutions, who require more stringent regulatory compliance than typical cryptocurrencies are capable of doing. Together, Ripple and various fiat entities are attempting to achieve real-time financial transactions at a very low cost.
Fast, Cheap Transactions
In the current international transaction market, cross-border payments can take days or even weeks, costing annual fees in the trillions. XRP token-based payments have the potential to cut those costs by up to 60 percent.
The true strength of Ripple (XRP) lies in its fast transaction speeds. The average Ripple transaction takes approximately three seconds to complete.
Transactions on the Bitcoin (BTC) mainnet can take much longer—offering XRP apparent competitive advantage. However, the Lightning Network may offer Bitcoin a way to increase transaction speed to erase this advantage.
Furthermore, XRP is used primarily by Ripple’s clients. Its audience may be much more limited than Bitcoin’s, and fast transaction speeds may not be enough to threaten Bitcoin’s dominance—espeically not as long as Bitcoin can make use of sidechains.
Other competitors with similarly fast transaction speeds include:
- Stellar (XLM), boasting two to five-second transactions
- Nano (NANO), with instant transfers and zero fees,
- SWIFT, a Belgium-based payment facilitator.
Partnerships
In an effort to bring its unique platform to mainstream financial markets, Ripple has entered into strategic partnerships with over 150 banks internationally over the past five years. The goal of these partnerships is to enable widespread instant or near-instant transactions available at very low cost.
Ripple has ties to major financial institutions such as American Express (NYSE:AXP), Bank of America (NYSE:BAC), RBC, Santander (MC:SAN), and most recently, J.P. Morgan.
Unique Enterprise Services
Ripple regularly releases new enterprise services for its clients. These include:
- xCurrent: Integrates XRP with global payment processing for banks
- xRapid: Offers payment processors on-demand liquidity using XRp
- xVia: Allows business to send payments using XRP across the Ripple network (RippleNet)
These services, coupled with Ripple’s unique consensus mechanism protocol—which validates balances and transactions while stopping malicious entries—have also XRP’s market value.
Technical Analysis
XRP continued to be one of the most resilient coins throughout 2018 and 2019. Currently, XRP is ranked third overall with a total market capitalization of nearly $13 billion—$1.5 billion less than the second-ranked Ethereum (ETH). XRP has done especially well with its value compared to Bitcoin (BTC).
XRP prices have not been immune to the cryptocurrency market fluctuations, however. Coming off a market cap high of $130 billion USD in January 2018, the XRP coin continued to hold strong throughout the 2018 market outperforming most other crypto assets.
After experiencing a monthly low of $0.0197—on Bitfinex—on Dec 7, 2017, XRP’s price increased rapidly. It reached $3.30 on Jan 4, 2019. Prices subsequently crashed—reaching $0.5729 on Feb 6.
Four days later, it reached a high of over $1.22. XRP. By late March, it was trading at under $0.50. In August, prices under $0.30 had been reached.
Price increased steadily in mid-September with a high of over $0.79 reached on Sept 21. Prices have since steadily declined. Since mid-January 2019, XRP has been trading in lower $0.20s and upper $0.30s.
Despite these lows, XRP is still trading for more today than in early Dec 2017. Furthermore, its losses have not been as drastic or significant as those experienced by other cryptoassets.
It is difficult to say exactly how much of this volatility could have been avoided without cryptocurrency’s bear conditions. But they certainly impacted XRP’s performance over the last 15 months.
Specialists’ Perspective
As both a platform and a cryptocurrency, the ability to attract and retain big-name clients is one of the things Ripple does best. It does this by offering strong solutions to existing struggles in the financial world.
The Ripple protocol consensus algorithm was developed with a node structure that isn’t exactly a blockchain. This may work to its advantage, as it suits the goals of the platform perfectly.
Because Ripple was carefully designed to be used by banking institutions, it fortuitously falls under the regulatory oversight of those banks. It also avoids the messy, sometimes expensive regulatory attempts of the SEC and other governing bodies to keep cryptocurrency investors as safe as possible in such a volatile environment.
On the Ripple consensus protocol, financial institutions have the capability to conduct very fast, very low-cost currency exchanges from anywhere in the world. This is a valuable tool, as a traditional means of currency exchange fail to meet either the low cost or high-speed standards established by Ripple.
XRP also just announced listing on cryptocurrency exchange Skrill, a popular London-based currency exchange. This indicates a continued commitment to a comprehensive partnership strategy that has helped Ripple grow and expand into new markets. Ripple now boasts partnerships with over 150 key contenders in finance and banking internationally.
Several potential partnerships with corporations such as Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) have been forecast. If these companies integrate Ripple blockchain payment technology into their existing platforms, the XRP price will certainly skyrocket.
Ripple Price Prediction 2019
Ripple (XRP) 2019 prices are confidently predicted by experts such as Investing Haven to reach highs of $20 USD. This confidence stems from a firm belief in Ripple’s place as the cryptocurrency with the highest potential out of the entire market. Stating an appreciation for Ripple’s seemingly smooth transition to a fiat banking tool for international transactions, including fast rates and low-cost fee transfer management, experts like Investing Haven are unconcerned about Ripple’s relatively low prices.
This is, however, also an interesting position to take, as others are convinced that the future of cryptocurrency value and mainstream potential lies in dApps (decentralized applications). Ripple has focused almost exclusively on its place as a payment methodology. It has done this by improving protocols and strengthening existing vendor relations. It has also added promising new features and relationships.
While other experts predict lower gains, anywhere from $5 to as low as under $1, based on its strong growth activity on both its platform and throughout the financial and investment worlds, Ripple remains a good short-term investment.
Ripple Price Prediction 2020
Ripple (XRP) may really take off in 2020. With low XRP coin price estimates around $1.40-1.50, purchasing XRP would still be a solid investment for buyers looking to hold the coin for up to two years.
Other experts predict highs of up to $20 USD by 2020, depending upon the success and widespread adoption of Ripple as an international transaction tool.
However, like every other cryptocurrency right now, XRP’s value trajectory is dependent on how quickly the bear market of 2018 corrects. If the majority of 2019 is spent in a correction without a lot of growth over and above that recovery, prices may remain relatively low into 2020.
It is important to keep in mind that cryptocurrency is notorious for surprises, both good and bad, and Ripple may continue its trend and exhibit yet another good surprise in the next couple of years.
Ripple Price Prediction 5 years
Five-year price predictions for Ripple (XRP) are all over the place, and understandably so. With a range from $0.63 USD, predicted by Wallet Investor, $2.00 USD by Cryptoground, all the way up to over $100, this range does warrant an explanation.
Ripple (XRP) has secured for itself a completely new position in the financial world. It is carving an invaluable spot directly into fiat’s well established financial world. This position is one that many digital coins have sought to achieve, albeit in different ways.
Ripple’s work with financial giants such as American Express and Bank of America, in addition to its goals to transform international financial transaction costs, are all contributing to the coin’s uncertain future value.
Lower five year Ripple predictions may also be the result of the overall instability of the current crypto market, especially for Bitcoin. Despite its status as an independent entity from Bitcoin, Ripple is not immune to these issues.
Our Prediction
At BeinCrypto, our current prediction for Ripple (XRP) is based on our belief that Ripple continues to strengthen an already solid product. Our prediction is that XRP is a solid investment, both long-term and short-term, with potential upward growth and price increase of anywhere from $2 USD to $20 USD over the next several years. As always, we are cautious in making any solid forecasts while cryptocurrency as a whole remains in the throes of this bear market. However, Ripple offerings are valuable for fiat and digital currency alike, and with few competitors showing the depth and commitment of XRP’s platform and future developments, we are confident this coin is a solid investment.
Disclaimer:
This article is not meant to be used as personal investment advice, nor is it information from a qualified investment advisor. Cryptocurrency is a notoriously risky investment, and it is possible to lose everything. Please conduct your own research and investigation prior to investing in cryptocurrency.