After dominating the headlines with its YOY price increase of 400% and selling for $3, XRP is turning investors’ heads again, this time with astronomical price predictions – some of which are backed by industry heavyweights like top analyst Steph Is Crypto. According to them, there’s a huge breakout ahead of XRP in the days to follow, as signaled by the latest chart patterns. XRP has spent the past months in a steady, uptrend consolidation phase, and signals now indicate continued bullish momentum. “Acquisition” is a keyword in the latest news: institutions are buying Ripple’s cryptocurrency while Ripple is acquiring other firms (e.g., Rail).
All this good news may make you feel it’s high time to buy some XRP – or increase your XRP holdings. But a favorable XRP price prediction on your side is less than an insufficient sign that you should spend hard-earned money on a speculative and unpredictable investment tool like cryptocurrency. To help you boost your confidence in your investment decisions, we’re breaking down the main factors that drive all this bullishness. Stay close for more: the market evolves at breakneck speed, and you want to stay on top of news – now and later on.
18 XRP ETFs
Conversations around XRP are intensifying as investors await 18 fresh XRP exchange-traded funds (ETFs) to hit the market. October months are nicknamed “Uptober” months among crypto masses, this month usually proving to be very rewarding for investors – alongside November. It’s one of the most favorable months for the industry, so many make their investments well ahead of the last quarter of the year to yield results.
XRP is now a prominent contender for crypto ETFs, also known as investment funds that mirror the price of the underlying asset – in this case, XRP. Buying a share of this fund via stock exchanges offers exposure to crypto, but in a simpler way compared to investing directly on online crypto exchanges themselves. ETFs’ ethos targets affordability and security, and with the increasing institutional adoption surging and favorable regulations, XRP’s price may encounter a short-term spike. Fresh fund flows from institutional entities like Grayscale and ProShares into XRP indicate increased demand, potentially leading to higher prices.
What inspires all this trust?
Why is XRP convincing so many institutional mammoths?
- By offering ETFs, issuers profit from the popularity of crypto with offers that make it easier and safer to invest, thus tapping into a new customer category;
- XRP is the third biggest crypto by market cap, occasionally swapping seats with Tether, and has significant market volume and liquidity;
- XRP has real-world utility as Ripple’s network is designed to enhance cross-border payments for financial institutions and banks, which are increasingly involved in the asset
- The regulatory clarity unlocked by the favorable post-SEC settlement reduces legal risk for XRP exposure.
Another top crypto analyst, Crypto King, draws attention to how involved big public names within the industry are with XRP, whose investments range from $200MN to $1.5TN. All of this contribution encourages the belief that XRP will experience a new high at some point. However, it’s still unclear how these funds will actually impact the XRP price, especially if we look at the precedents that have already been set by Bitcoin and Ethereum. Another market analyst, Ali Martinez, argues that XRP won’t rise higher than $3.60 anytime soon, regardless of the touted breakout.
Bullish signs
New interest cuts awaited
Many investors and muggles altogether expect a new, additional interest rate decrease in October, following the one occurring in September that caused a slight price spike for cryptos. It was the first markdown in a year, recorded after the Federal Government greenlighted the reduction by 25 basis points.
Interest rate cuts are largely advantageous for crypto, as they help boost liquidity in financial markets by and large. More capital can flow into risky assets like crypto, and among digital coins, XRP is a favorite. As a general consequence, investors expect a new breakout if the Fed agrees to sign one more 25-basis points rate cut.
Win against the SEC
XRP entered the spotlight in September, catapulted to media attention thanks to the SEC-based win, ETF approvals, XRP Ledger upgrades, and more regulatory clarity. Analysts view this combination of technological, financial, and legal stimuli as a potential turning point that will transform XRP into a mainstream asset rather than a speculative token in the financial world.
Regulatory developments
In August of this year, Ripple ended a five-year legal battle over whether XRP should be treated as a security or commodity, settling the case with a fine of $125. The SEC classifies XRP as a commodity and approves its integration into investment vehicles, such as the long-awaited ETF applications.
What can fuel a potential drive to $4?
Other factors that can push XRP to $4 include Ripple’s increasing ecosystem, Ripple technology’s expanding real-world applications, and its strides in the broader financial system, to name a few. Ripple keeps enforcing its role in global payments, as can be drawn from its most recent partnerships with financial institutions and banks looking for cheaper and faster operators to process cross-border transactions better.
The company has recently declared a new constituent of its stablecoin strategy – the acquisition of stablecoin-powered global payment Rail. This deal boosts the company’s standing as a frontrunner in crypto payment infrastructure, which can only benefit the crypto associated with it: XRP.
Right now, more institutions are exploring XRP for on-demand liquidity solutions, as it allows them to settle transactions instantly without needing any pre-funded accounts. This growing adoption suggests organic demand for XRP as a utility asset, which has managed to shed its image as a mere speculative trading instrument.
Conclusion
Several factors are behind the speculations that XRP might hit $4 sooner rather than later, including regulatory clarity, institutional demand, real-world applications, and ETF exposure. XRP is having a monster year and could end it on a similarly favorable note. However, investors are still cautioned to proceed with carefulness, balancing risk with opportunity. Crypto – XRP included – remains unpredictable and risky.
