The crypto landscape is just as volatile as the bitcoin price. As a result, XRP is often the center of speculation and controversy. Just a few days ago, legendary analyst Peter Brandt’s bearish forecast for XRP was on the hot seat blazing fear among investors. Diverging opinions further complicate XRP’s uncertain outlook. TOP INSTITUTIONS AND INFLUENCERS Bullish forecasts from institutions such as Standard Chartered and influential individuals further complicate the narrative. Token ATH! is back to unpack these clashing narratives. They provide an impartial and level-headed viewpoint to guide you through the sometimes tumultuous XRP waters.
The Case Against Selling XRP
This section will explore both sides of the argument, starting with the bearish outlook and then transitioning into the reasons why some believe in XRP's long-term potential.
Overview of the Bearish Sentiment
A few technical factors are stoking the pessimism around XRP. Market Analyst Ali Martinez has predicted a XRP price correction of 40%. This would reduce its market capitalisation to the $1 level. This projection won’t be an overnight moonshot, but is based on what we have seen in chart patterns and trendline studies.
According to the Crypto Times analytical team, XRP has had quite the fight just to maintain its critical support trendline. This ordeal was enough to cloud the already dark forecast for the cryptocurrency. This inability to hold support frequently leads to even more downwards price action.
Key Factors Influencing Market Perception
The bearish momentum is further confirmed by other technical indicators. A falling Relative Strength Index (RSI) means that XRP is losing buying strength, signaling that it could be overbought. Long-standing sell signals from the Moving Average Convergence Divergence (MACD) indicator are alarming. The trend indicates that the price is indeed likely to keep going down.
As the beginning of today’s session, analyst consensus seemed clear that staying above $1.75 was imperative for any hope of a short-term recovery. Despite this, XRP has had trouble holding onto this level. This failure to hold above this important line in the sand adds to the bearish mood and increases fears that prices are headed even lower.
Reasons to Maintain Your XRP Holdings
Against all these bearish predictions, there are some compelling reasons why you shouldn’t sell your XRP and why this could prove the right strategy. Ripple’s lawsuit, now possibly on the brink of resolution, will have an outsized effect on XRP. Plus, new partnerships and exciting, pioneering use cases for XRP are coming down the pipeline.
Ripple Lawsuit Approaching Resolution
Ripple’s legal battle with the SEC has been the biggest factor dragging down XRP’s price. But even as the case has dragged on, there is growing hope that a cure may be on the way. A positive outcome for Ripple would likely send XRP soaring, given that it would be an even larger regulatory cloud lifted.
It’s worth emphasizing that a resolution was never an outright win for Ripple. A good settlement would provide much needed clarity. This would permit XRP to function with much more clarity and thus be more likely to attract institutional investment.
Potential for Multiple XRP ETFs
Thanks to the success of the current Bitcoin ETFs, other cryptocurrencies are now queuing up to join them. As the market continues to mature, the chances of XRP ETFs being brought into play only increases. These new ETFs make it easier than ever for retail and institutional investors alike to gain exposure to XRP. The more people who invest, the more the demand—and therefore price—could increase.
For one, it would be a big milestone in XRP’s journey to become recognized as a legitimate asset class. Such a move would help enhance its credibility and increase interest from a wider swath of investors.
Anticipation of Price Discovery
The regulatory picture is starting to clear. New enterprise and consumer use cases are continually being developed, increasing community excitement for XRP’s market price discovery. This indicates that the market will soon wake up to the real value of XRP, determined by its use case as a bridge currency and its significant upside.
Many different things might set off this price discovery. These factors range from greater acceptance by financial institutions to effective implementation of new technologies to a supportive regulatory environment.
Regulatory Clarity on the Horizon
Regulatory uncertainty has arguably been one of the largest obstacles XRP has ever faced. Despite this, there are still signs that the regulatory climate is starting to make more sense. The federal government wrangles with regulating cryptocurrencies like XRP. Ongoing talks and litigation are driving this process.
Similarly, this certainty with regulations creates a more stable ecosystem for XRP. It will bring in more private investment and spur greater overall adoption.
Support from Pro-Crypto Political Figures
Increasing backing from pro-crypto political figures Another bullish signal for XRP comes from the rising support of pro-crypto political figures. These politicians have been outspoken on supporting policies that advance the growth of a positive cryptocurrency industry, which would be a positive for XRP.
Their advocacy helps produce better regulations, spur investment, bring acceptance of cryptocurrencies to a broader audience, and more.
Introduction of RLUSD and Its Implications
The release of RLUSD, a stablecoin developed on the XRP Ledger, represents an important breakthrough for the XRP ecosystem. RLUSD is all about providing users with a stable, reliable medium of exchange. It powers many use cases such as payments, remittance and decentralized finance (DeFi).
The implications of RLUSD are far-reaching. Further, it can improve the overall utility of XRP by offering developers a stablecoin that easily integrates with their applications. This could bring more users and developers to the XRP Ledger, consistently increasing its value.
Upcoming Partnerships for Ripple and XRP
Since that time, Ripple has continued to aggressively make in-roads with financial institutions and other companies internationally. These partnerships are intended to broaden the use of XRP in cross-border payments and in other use cases.
Combined, these partnerships will greatly increase the demand for XRP. Each time a new institution adopts Ripple’s technology, they will be able to utilize XRP for their fungible payment solutions. This, in turn, drives wider adoption and pushes up the price of XRP.
Edoardo Farina, Head of Social Adoption at XRPHealthcare, has a refreshingly pragmatic take on things. To him, purchasing an XRP token for $1 would be a good investment. Instead of fretting about the fall, he’d use the opportunity to purchase additional XRP tokens with the price depressed. This shows a strong conviction in XRP’s long-term potential, despite short-term price movements.
So, should you buy, sell or hold XRP XRP remains a high-risk asset and will likely not be suitable for conservative investors. Consider the bearish and bullish theses equally, honestly, and thoroughly. Next, base your decision on your long-term financial objectives to determine the best course of action for your XRP assets. Subscribe to Token ATH! to get more news, tips & tricks, how-tos, investment ideas and more as we explore the changing landscape of cryptocurrency.
