The XRP price action depicts a beautiful bullish continuation pattern on the daily chart that promises a 40% breakout if market conditions remain favorable. On September 18, the Federal Open Market Committee (FOMC) announced a 50 basis point cut on the interest rate, and XRP surged by 5%. If Ripple successfully captures 50% of the global remittance market and the regulatory hurdles diminish, could the XRP price soar to $5?
Growing Remittance Market Could Moon XRP Price to $5
XRP is designed to facilitate fast and low-cost transactions across borders. This is needed for the mammoth global remittance market, which, according to Statista, is projected to reach $11.53 trillion in 2024 and $16.59 trillion by 2028. Digital remittances took the lion’s share of global digital payments, closely followed by digital commerce. Mobile POS payments came in last.
XRP has a total supply of 100 billion coins and only 56 billion in circulation. Taking on a $16 trillion industry with only 100 billion coins spells a $160 price tag for XRP. However, currently, there are only 56.4 billion in circulation.
Assuming they never release the escrowed tokens into circulation, the XRP price could rise to $283. In February, Ripple’s CTO detailed Ripple’s ability to effectively ‘burn’ the 40 billion locked XRP by ‘backholding’ the associated accounts.
If you define “burn the escrow” to mean “ensure that no XRP from the escrow can ever get into circulation”, then Ripple could do that unilaterally by blackholing the account the escrow cancels into.
— David “JoelKatz” Schwartz (@JoelKatz) February 19, 2024
A price surge to $283 per XRP would constitute a 48,900% increase from the current prices. Still, speculation that XRP could become a reserve asset, similar to how Gold is a reserve for the US Dollar, spells even higher prices for the coin.
SEC vs Ripple Appeal Window Narrows Down
There are now only 17 days to October 6, the deadline for the U.S. Securities and Exchange Commission (SEC) to appeal the settlement. Ripple was ordered to pay the SEC $125 million in the lawsuit settlement; however, the former moved to keep the funds until after the appeal period had expired.
A non-appeal from the SEC could drive the XRP price to $0.85 and even $5, echoing the market’s response to the earlier ruling.
In an interview on CNBC, SEC Chair Gary Gensler emphasized the need to protect investors.
Despite recent losses against Ripple, Gensler’s comments indicate that the SEC remains committed to regulating the digital asset space through enforcement actions. This stance coincides with the ongoing crypto legislation hearing in the U.S. Congress, which is expected to expose sharp partisan divides, particularly with Democrats’ resistance to certain crypto regulatory efforts.
Meanwhile, the recently launched Grayscale XRP trust is now open to eligible accredited investors (whales).
Grayscale’s private placements are open for eligible accredited investors – check out the list 👇$AVAX $GBAT $BCHG $TAO $GLNK $MANA $FILG $LTCN $MKR $GLIV $NEAR $GSOL $STX $GXLM $SUI $XRP $ZCSH
Learn more and see important disclosures: https://t.co/OvKxDFAoEX pic.twitter.com/C27WlVHBEJ
— Grayscale (@Grayscale) September 17, 2024
These factors have triggered a bullish sentiment around XRP, contributing to its consistent uptrend since early July.
The Ripple price has increased by 1.1% over the last 24 hours and is trading at $0.5859.
Can XRP Price Reach $5?
XRP price has been respecting an ascending trendline, indicating a series of higher lows. This suggests a steady uptrend in the short- to mid-term.
$0.64 is the key resistance level that marks the top of the recent range. The price has been consolidating below this level, and a breakout would propel the price up to $0.85, a 40% potential gain from the current price. Although the recent candlesticks show consolidation, there’s a notable upward pressure supported by the ascending trendline.
If the XRP price fails to hold above $0.56, it could drop lower to $0.52, $0.50, and $0.42. Nevertheless, the long-term target is also $5.00, with the potential for higher gains if the trend continues and market sentiment holds bullish.
Frequently Asked Questions (FAQs)
If Ripple captures a significant share of the global remittance market, which is projected to grow significantly in the coming years, XRP could see substantial price increases. Additionally, if the SEC does not appeal its settlement with Ripple by October 6, this could further bolster XRP’s price potential.
Recent developments, such as the announcement of a 50 basis point cut on the interest rate by the Federal Open Market Committee (FOMC) and the establishment of the Grayscale XRP trust for accredited investors, have contributed to a positive outlook for XRP.
Speculation exists that XRP could eventually be viewed as a reserve asset, similar to gold for the US Dollar. If this occurs, it could drive the price even higher.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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