Ripple (XRP) Price Prediction 2018: Ripple (XRP) pulled down by the bears, shows signs of recovery
An obscure coin in the past, Ripple [XRP] has journeyed a long way since its launch in 2012. It is ranked third on CoinMarketCap, in terms of market capitalization. The cryptocurrency is designed for banks and global financial transactions. It is the largest crypto company to utilize the blockchain protocol for the benefit of banks. It has already licensed its blockchain technology to many banking giants including Santander.
The company’s system is both cost-effective and secure compared with other digital currencies. This feature of the company attracts banks because expensive transactions transitions to ‘freeish’ transactions. Ripple intends to develop the decentralized digital currency approach of Bitcoin and earn money the way internet procures money using information.
The Concept Behind Ripple[XRP]
Ripple aims to replace USD as the common currency for transactions. The advantage of using XRP instead of USD is the fact that the process of conversion from any currency to XRP is much cheaper and takes only 4 seconds to conduct the transaction. It can handle 1600 transactions every second. The curt exchange fee coupled with a brief transaction time has made many banks look at the digital currency as a possible option to conduct transactions quickly and profitably.
Ripple [XRP] Price Analysis
XRP is currently trading at $0.4565 and is losing by 0.38% during the past 24 hours. The prices are showing resistance at $0.438 and are currently facing a short consolidation phase. The major support level is noted at $0.433. At 10:55 UTC today, the coin found a significant hike of 4.39% against the UD Dollar. This has also pumped up the trading volumes by $31 million, which is an increase of 16%. BitBay continues to be the top trading exchange for XRP, standing tall at 16.1%, only to be followed by Binance and HitBTC, who constitute for 9.65% and 8.34% respectively. The MACD is traced in a bullish zone and the 100 EMA line exhibits an uptrend. The significant trading range for today is found to be from $0.438 to $0.458.
Factors that Affect XRP price
Ripple is combating numerous lawsuits. The core of these lawsuits is the debate whether XRP is a security or not. Even after Ripple CEO, Brad Garlinghouse’s ample justifications arguing it is not a security, a third lawsuit has been filed against the company. This uncertainty looms as a dark cloud over the company, making investors wary of betting their money on XRP.
Another factor that affected Ripple’s reputation is the allegation that the company paid to be listed on certain exchanges. Coinbase, the largest exchange still ignores the coin due to its current state. Once the Security Exchange Commission takes a stand on the current dilemma, the digital token will be able to regain its old ways of trading at much higher prices. Also, Coinbase might consider enlisting Ripple which will only increase its popularity.
Chasing a price rise
- Ripple System: The system offers minimal exchange fees and a brief transaction time. This gives it an edge over the normal money transfers which is time-consuming and expensive.
- Partnerships: The company has tie-ups with many banking giants and also seeks to expand its operations even as far as India. It is specially designed for business transactions. They conduct faster transactions on a decentralized base with much lesser costs than a normal transaction.
- Funds in Escrow: The company has put 55 billion XRP in escrow. A smart contract releases 1 billion XRP per month over a period of 55 months. The unused tokens will be carried forward to the coming months. XRP tokens are issued to the company’s partners and other associates to road test the currency. This gives a momentum for price rise.
- Exchange listings: Ripple’s much-awaited Coinbase listing will hopefully hike the stock prices. Three new exchanges have added XRP to their trading list including an Indian-based exchange, Unodax.
- Government regulations: Cryptocurrencies are still in the phase of development. Since it’s a novel concept and multiple companies are burgeoning in the Blockchain market government regulations are bound to emerge sooner or later. Regulations can affect the company’s growth as well as hamper prices.
- Fledgling technology: XRP’s technology is still being tested by banks which have offered partnerships to the company. Only if this trial run turns out to be successful will the banks adopt their technology. If any of the banks, especially a banking giant, rejects the offer there are strong chances that the prices would fall.
- Competitors: As the crypto market is swelling with new additions, the competition surges. Ripple’s main competitor is considered to be Stellar Lumens which specializes in global payment platform akin to XRP. Currently, Stellar is exhibiting a price rise while XRP is showing a slump.
- Coinbase’s ignorance: Coinbase, the largest US Bitcoin exchange, has largely ignored XRP. Even after multiple requests from the company to add the currency to the exchange, Coinbase seems to have neglected the coin due to its current state of confusion.
- Centralisation: Many investors opine that it is a private company with numerous banking connections and therefore cannot be trusted as a currency.
Stellar is considered to be Ripple’s primary rival. Stellar also strives to bring about faster and cheaper ways for global transactions. Even though Stellar started out with Ripple’s technology, it redesigned its system. However, Stellar’s features are no match for Ripple’s. Stellar is much behind Ripple and would require time to catch up to it.
Swift is another company that is deemed to be a challenge to Ripple. Swift, established in 1973, has been serving banks and is seen as a reliable way of transacting money. Swift’s global payments innovation [gpi] initiative was introduced to ensure cross-border payments become faster. Ripple brushed off Swift’s improved gpi as just a “marginal improvement based on an outdated architecture.”
As the king of the crypto market, Bitcoin is in competition with all the other coins in the market. Unlike Ripple – a private company which has partnered with major lenders – Bitcoin is a decentralized currency which can’t associate itself with any company or entity. BTC operates on a miner dependent Blockchain while Ripple uses a transparent Blockchain. Ripple has a host of features compared to Bitcoin, the most attractive one being fast-paced transactions. While Bitcoin requires an average of one hour to complete a transaction Ripple takes only 4 seconds.
Ripple Price Prediction 2018
The Economy Forecast Agency predicts XRP’s value could fall further – due to technology partnerships not being successful as promised. They say that XRP could fall to $0.32 by December 31st, 2018, which would represent a 52% fall from its current price of $0.48.
According to RippleCoinNews, XRP will rise to $8-10 dollars. According to Investingpr, XRP can end the year around more than triple or 3-5 dollars. This will almost be a 10-time rise from the current levels.
ValueWalk, a crypto research service, believes that if XRP becomes a real partner with a banking group it could push the coin’s value to the $10 mark. However, if the partnerships don’t work out the XRP token price could fall below the $0.50 mark.
According to Craigbeck, XRP is expected to break the $1 hurdle by the end of this year. The trade quantity is predicted to increase next year which in turn will enable the currency to cross $2 and even reach $3.
XRP is a promising crypto asset with remarkable long-term potential. It created 100 billion coins initially and over 39 billion are in circulation currently. The company can circulate 1 billion coins per month which might lead to an oversaturation of markets. Stephen Powaga, the research head at Blockchain Momentum says,”It’s somewhat concerning for me because if they chose to release them as quickly as possible, within a little over four years, you’d see more than a doubling of supply of ripple,”
XRP is predicted act as liquidity solution for cross-border transactions. According to David Schwartz, Ripple’s CTO, “With what Ripple is doing on the banking side, we are trying to position XRP as that intermediary asset that can provide liquidity between other assets.” It has now attached itself to major banking corporations, unlike most cryptocurrencies which tend to ‘anti-bank’. The idea of instant and cost-effective transactions has attracted major banks across the globe to test drive XRP’s technology.
Ripple also has the potential to replace Swift, the organization which has monopolized global payments. Banks can ditch services like Swift and use XRP to pay multi-currency transactions to reduce overheads. Ripple’s technology can supplant global remittance systems like Mastercard while reducing charges and conducting faster remittance services. Since capitalists from the extensive industry of banking have considered to partner with Ripple, the coin can be considered as a safe investment.
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