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Cryptocurrency News Articles
XRP Price Prediction: Will Ripple's Native Token Break Out as Bulls Defend $0.5785 Support?
Sep 25, 2024 at 07:03 am
XRP, Ripple's native token, is witnessing intense action as bulls fiercely defend a key support level of $0.5785. As the price consolidates and eyes resistance points at $0.5920 and $0.600, many are asking if XRP is poised for a breakout.
XRP, the native token of Ripple, is currently facing a crucial resistance level at $0.5920. If bulls can manage to push the price above this level, the next resistance point lies at $0.600. However, XRP’s future price movements are largely dependent on its role in facilitating large-scale financial transactions.
A closer look at XRP reveals that its price is not primarily driven by retail speculation, but rather by the volume of transactions being settled on the Ripple ledger. This is in contrast to other cryptocurrencies, where market capitalization is a key factor.
To fully understand XRP’s price potential, it is essential to consider the value being transacted on the Ripple ledger in relation to the circulating supply of XRP. This unique characteristic sets XRP apart and suggests that traditional market cap metrics may not accurately reflect its true value.
For XRP to function effectively as a settlement tool for banks, it needs to maintain deep liquidity pools. Crypto Tank points out that financial institutions like Bank of America, SBI, JP Morgan, and Swift handle daily settlements in the range of $25 to $30 trillion. Even if XRP manages to capture just 10% of this daily volume, the Ripple ledger would be handling approximately $3 trillion in transactions.
Such large-scale transactions would require a substantial liquidity pool to prevent any transaction failures. According to Crypto Tank, the liquidity pool should be at least double the transaction amount to ensure smooth and reliable settlements. This need for deep liquidity is crucial for XRP’s long-term utility, as banks cannot tolerate the risks and delays associated with failed transactions.
Ripple’s network of bank partnerships is expanding rapidly, with over 1,700 undisclosed agreements (non-disclosure agreements, or NDAs) in place. This is a massive scale of partnerships, and the true extent of XRP’s future demand may only be partially visible at the moment. These partnerships add significantly to XRP’s liquidity needs and, by extension, its value.
One key point highlighted by Crypto Tank is that retail investors have a minimal impact on XRP’s price. While retail buying pressure may influence short-term market moves for other cryptocurrencies, XRP’s value is tied to the settlement needs of major financial players. This means that even if retail traders buy or sell XRP, it won’t have the same influence as the institutional transactions Ripple facilitates.
For traders accustomed to predicting price movements through chart analysis, XRP presents a different challenge. According to Crypto Tank, chart analysis is less effective for predicting XRP’s future because it doesn’t account for the utility and liquidity that drive its price. The token’s price isn’t solely influenced by market trends or speculative buying; rather, it is shaped by real-world financial activity.
As institutions increase their use of XRP for settlements, its utility will grow, which could push prices higher over time. With Ripple’s 1,700 bank partnerships and the massive liquidity pools required for their transactions, XRP is positioned for a potential price surge driven by demand from financial institutions.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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- Sep 25, 2024 at 10:15 am
- Ever since the United States announced its latest interest rate cut, Bitcoin [BTC] experienced a gradual rebound in price. The cryptocurrency surged to a peak of over $64,000 on the 23rd of September, gaining 8.5% in value over the last week.
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- Bitget Announces Price Prediction Contest Ahead of Hamster Kombat Coin Listing
- Sep 25, 2024 at 10:15 am
- The contest invites participants to predict the highest HMSTR coin price during its first 24 hours of trading. The winner of the contest will receive $100 in HMSTR tokens if their prediction is the closest to the actual price.
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- Solana (SOL) Poised for a Massive Upside Rally Targeting $165 After Its Consolidation Breakout
- Sep 25, 2024 at 10:15 am
- Solana (SOL), the fifth-biggest cryptocurrency by market cap appears bullish and poised for a massive upside rally following its consolidation breakout.
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- RCO Finance: The Under the Radar Cardano (ADA) Alternative
- Sep 25, 2024 at 10:15 am
- Amidst the uncertainty surrounding Cardano (ADA), RCO Finance presents the perfect opportunity for investors to hedge their investments and make significant returns.
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- EverValue Announces Upcoming Presale of Its EVA Token, Combining Bitcoin-Backed Stability with Innovative Features
- Sep 25, 2024 at 10:15 am
- Unlike traditional platforms, EverValue allows investors to maintain full control of their tokens, without relying on third-party storage solutions.