On April 6, the value of the XRP token renewed its three-year high, breaking the $ 1 mark. The asset displaced USDT from Tether from the fourth line in the rating of currencies by capitalization.
ForkLog found out from experts how long the current growth of the token will be and what local maximums it can reach in the near future.
EXANTE chief strategist Janis Kivkulis believes that the fate of XRP remains uncertain. This is due to the closeness of the Ripple company itself and numerous suspicions of fraud.
“When Ripple assures investors of good chances of winning, it is highly likely to be a bluff,” the expert warns.
The claim of the US Securities and Exchange Commission (SEC) against the company can be viewed in two ways: as a desire of the regulator to force Ripple to be more legality and openness, or as a sign to corporate cryptocurrencies that they are at great risk, by analogy with Pavel Durov’s Telegram Open Network (TON) …
“Right now, XRP is showing growth amid rumors that the token will be listed on a number of exchanges, including Coinbase. But this does not at all mean a positive outcome of the proceedings – the series of delisting preceding this had no serious legal grounds, and the token technically remains in operation, ”says Janis Kivkulis.
He added that if the company loses the court, XRP risks being finally squeezed out of the crypto market, and if it wins, its price could skyrocket.
“However, even with the growth of the asset, it is worth remembering that this is a completely commercial project, which has a very conditional relationship to the cryptocurrency world,” Kivkulis said.
The coin has indeed earned itself a controversial reputation in the community. The founder of Garantex and CEO of Indefieco Sergey Mendeleev said that commenting on Ripple is “bad form”.
Yuri Mazur, head of the data analysis department of CEX.IO Broker, associates the current growth of XRP with catching up on lost dynamics, which is supported by the influx of new investors and the return of old players.
“It is profitable for investors who have invested in XRP at peak values to raise the price of an asset in order to optimize their losses. And new investors in XRP are attracted by the certainty and clarity of the boundaries of potential growth. The closest probable levels for the growth of the token price are $ 3.2–3.7, “the specialist is convinced.
The main factor for all market participants, Mazur called the outcome of the litigation with the SEC:
“If market participants get a hint of a favorable outcome for Ripple, XRP / USD is likely to not only return to its 2018 peak, but also renew its all-time highs.”
According to the analyst, from a technical point of view, the XRP / USD pair is entering the positions of the second growth wave, while other assets are in anticipation of the third wave.
“Probably, the XRP pump will initially be limited to a resistance zone around $ 1-1.2, from which there will be a slight correction. Then, with a favorable fundamental background, a sharp rise to $ 3.2 is quite possible. However, in case of a negative scenario of the development of events, the correction from the levels $ 1–1.2 will turn into a downtrend. So far, the likelihood of both events is approximately the same, ”concluded Yuri Mazur.
Tokenbox Co-Founder and Managing Partner Vladimir Smerkis links XRP growth to the prevailing bullish sentiment in the crypto market:
“I think that everyone has moved away from litigation a bit and are in a calmer position. There is a fairly high level of greed in which people buy certain coins, including XRP. “
The expert considers it a big plus for Ripple to be adapted by world banks as a financial technology for transferring and controlling the distribution of funds. However, he associates a high level of risk with the token.
“Fundamentally, I consider this coin to be quite high-risk and I would not recommend investing in it over 5-10 %% of the total crypto portfolio,” concluded Smerkis.
The head of the Six Nines data center Sergey Troshin named fraudulent activities and recent rumors about XRP listing on exchanges among the most likely reasons for the asset’s growth.
He recalled that the opacity of the token and the community’s dissatisfaction with the large volumes of its sales by top managers acted as factors of pressure on the price.
“This year, not only traders, but also the SEC have complained. However, traders from Reddit came to save the token – they have already repeatedly helped the drowning people this year. But this was not without manipulation – the price fell under an avalanche of sales, and many buyers were left in the red. “
Based on this, Troshin concludes that “no matter how the case with the SEC is resolved, the XRP token remains a dubious investment.”
Earlier, an analyst and trader under the nickname CredibleCrypto tweeted that XRP will soon regain its position as the third largest cryptocurrency by market capitalization.
Lol just watch how quickly $ XRP makes it back to the Top 3 …
– Credible Crypto (@CredibleCrypto) April 5, 2021
“Lol, watch how quickly XRP returns to the top 3.”
The XRP uptrend started after breaking the $ 0.56 resistance and retesting it as support, he said.
Red resistance region cleared, backtested nicely on the daily, looks good to go. $ XRP you are cleared for takeoff 🚀 https://t.co/kbMxCz7O9V pic.twitter.com/FiClRUIkdp
– Credible Crypto (@CredibleCrypto) April 4, 2021
“The red resistance zone has been cleared, well tested on the daily chart, okay. XRP is ready to take off, “CredibleCrypto wrote in a tweet dated April 4.
A few hours after this tweet, the value of XRP surged to $ 0.93.
Credible did not rule out that in the future XRP will be able to oust Ethereum from the second place in terms of market capitalization.
I don’t see why it wouldn’t be possible.
– Credible Crypto (@CredibleCrypto) April 5, 2021
“I don’t understand why this is impossible,” he said.
At the time of writing, XRP has a market cap of $ 47 billion.