It is important to keep in mind that the cryptocurrency markets are very volatile, which makes it difficult to accurately predict the price of a coin within a few hours, let alone long-term estimates.
Online trading platform Capital.com has provided its forecast for Ripple price (XRP) for 2022 and beyond as the SEC’s lawsuit against Ripple is expected to end in the coming months, either by settlement or court ruling, which will lead the market to draw its own conclusions.
The lawsuit has affected XRP trading in the US, but the cryptocurrency is still active in international markets. The end of the lawsuit is likely to lead to the re-listing of XRP on US exchanges.
Bearish in the short term, very bullish in the coming years
Capital.com took data from several sources to indicate the direction of XRP’s price. Writer Nicole Welling compiled price predictions from market data platform CoinCodex, algorithm-based professional investor, DigitalCoin, and PricePrediction.
While CoinCodex offered a short-term bearish prediction for XRP, Wallet Investor predicted that the average price could move to $1.1 by the beginning of 2022, to $1.68 by the end of 2022, and trade at $2.3 by the end of 2023, with the price likely. Reaching $3.5 by the end of 2025.
DigitalCoin predicts an average of $1.57 next year and $1.85 in 2025, with an average XRP of $4.17 by 2028. If the price prediction is correct, the XRP could average $3.64 in 2025 and reach $23.32 by 2030.
“It is important to keep in mind that the cryptocurrency markets are extremely volatile, which makes it difficult to accurately predict the price of a coin within a few hours, let alone make long-term estimates. As such, analysts can get their forecasts wrong,” said Capital.com. , reminding investors to do their own research, keep in mind that past performance is not indicative of future returns, and never invest more than one can afford to lose.
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Ripple Says XRP Price Driven by Wider Markets
“The underlying trading activity is the uncertainty rooted in this ongoing lawsuit filed against Ripple in December 2020 by the US Securities and Exchange Commission (SEC),” writes Nicole Welling of Capital.com.
In December, Brad Garlinghouse, CEO of Ripple, said: “The SEC theory that XRP is an investment contract ignores the economic reality that XRP is, and remains, a digital asset with a fully functional ecosystem and a true use case as a bridge currency that does not depend on the efforts of Ripple regarding its functionality or price.”
As for the price, it fell from $0.60 at the end of November 2020 to a low of $0.1748 in December 2020, when the SEC filed the lawsuit, but the crypto bulls sent XRP to a high of $1.9600 in April 2021, still Far from an all-time high of $3.84 printed in January 2018.
In its response to the lawsuit, Ripple Labs argued that Ripple’s price is driven by price trends in the broader markets, rather than attempts to influence the price by increasing liquidity as collateral.
“Extensive analysis of the data shows that the price of XRP correlates with the price of other leading digital assets — not Ripple’s announcements or news about its business. The data shows that the price of XRP has not been affected by Ripple’s public announcements, which means that the market does not believe that Ripple’s efforts translate into an increase in the price of XRP.”