XRP Price Prediction: Will Ripple Make Waves In 2024? (2024)

Love it or loathe it, XRP has cemented itself as a prominent player in the crypto market. Ranked seventh by market capitalization, XRP has held a spot among the top-ranking cryptocurrencies for more than 10 years.

Created by Ripple Labs, XRP is more than just a cryptocurrency—it’s an ambitious project aimed at transforming how money is moved worldwide. Ripple’s vision is to provide an efficient and cost-effective alternative to the existing SWIFT banking system. Using XRP, Ripple aims to enable faster, low-cost international transactions, making money transfers as easy as sending an email.

As cryptocurrency was created to move away from financial middlemen—such as banks—XRP has been a divisive project over the years. The project is known for its cult-like following, with members keen to silence naysayers and defend their belief in XRP, with some boosters making wildly unrealistic predictions about its growth potential.

To provide a balanced opinion on the project, we’ve sought the expertise of Grzegorz Drozdz, a market analyst at Conotoxia.

XRP’s Price History

Incredible highs, steep falls, and long periods of steady decline mark XRP’s journey so far.

The project launched its token in 2013 but saw little significant price action until the bull run of 2017. However, after this period, listings on popular exchanges became pivotal to the coin’s considerable price rises.

“The history of XRP cryptocurrency listings begins in 2018, a pivotal year for Ripple (the company behind XRP),” Drozdz tells Forbes Advisor. Ripple’s launch of the xRapid product was a defining moment, ushering in a new era where XRP cryptocurrency aimed to revolutionize money transfer, including within the banking system. The response from the market was phenomenal.

“Within a very short time, the price of XRP skyrocketed by as much as 1820%,” Drozdz says. From a humble $US0.2, XRP soared to $US3.84, an all-time high that naturally thrilled investors. However, as Drozdz notes, this jubilation was short-lived. “The cryptocurrency then fell by 93% in a matter of months, leaving a stark reminder of the volatile nature of the crypto world.”

But XRP wasn’t finished. In 2021, as the entire cryptocurrency market was caught in a bull market frenzy, XRP again provided significant returns to investors who got in at the right time. “Within six months, the cryptocurrency had increased by an impressive 710% to $US1.96,” Drozdz recounts. Yet the following period was a steady downward trend, as XRP’s value gradually declined to $US0.3.

Ripple has been engaged in a multi-year legal battle with the US Securities and Exchange Commission (SEC) which has impacted the price of XRP for the past few years, although the company has been on a winning streak of late. The first win, despite only being a partial victory, occurred when a judge ruled last year that Ripple had not violated existing securities laws by selling XRP to exchanges for retail investors. However, it did break the law by selling directly to institutional investors. This first victory caused XRP to soar over 80% in price overnight.

The second win came when a judge blocked the SEC’s attempt to appeal the ruling, again causing positive price action for XRP. The third win came in October last year when the SEC dismissed its own case against the company’s CEO and executive chairman. As of August 2, 2024, XRP sits at $US0.57771 with a market capitalization of $US32.30 billion.

As Drozdz points out, the past may not necessarily predict the future, but it can offer valuable insights to help guide investment decisions.

Related: Bitcoin Price Prediction

How Will XRP Perform?

Many investors are wondering about the future after Ripple’s recent winning streak against the SEC last year. The most significant victory, despite being only a partial win, involved the court ruling that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts, while the institutional sale of the tokens violated federal securities laws.

“The partial resolution of the dispute with the US Securities and Exchange Commission (SEC) could potentially spur growth for XRP in the near future,” explains Drozdz. This legal battle has been a significant factor in XRP’s performance, with developments closely watched by investors and the wider crypto community.

Yet, Drozdz offers a note of caution. “The dispute has not yet been fully resolved. While the recent developments are certainly encouraging, we cannot be completely certain about XRP’s future trajectory.”

In March, the SEC requested around $US2 billion in remedies against Ripple for the institutional sale of XRP. Ripple responded to the request in late April, arguing that a penalty of more than $US10 million was unjustified in this situation. The SEC has since responded and the final ruling will be handed down by the judge.

Understanding the correlation between legal resolutions and market performance is crucial. If the dispute with the SEC reaches a favorable final conclusion, it’s reasonable to anticipate that investor interest in XRP could spike. This would likely fuel new growth and potentially lead to an uptick in its price.

However, it’s important to remember, as Drozdz points out, that these projections are just that—projections. They offer a potential path for XRP’s performance in 2024, and beyond, but do not provide a definitive guarantee. Much hinges on the outcome of the SEC dispute and how the crypto market fares in the coming months.

What Does the Future Hold for XRP?

Forecasting the future of any cryptocurrency can be like trying to predict the weather: many variables are at play, some predictable, others less so.

Over the years, many price predictions have been made regarding XRP.

Crypto hedge fund manager, Thomas Kralow, previously predicted that XRP would hit $US30 a coin in 2023. This prediction fails to consider the mathematical improbability of XRP reaching this price, as the total supply of 100 billion coins means the project’s market cap would be $US3 trillion dollars. That is more than double the current market cap of all cryptocurrencies combined.

To avoid the sensationalist views often provided by XRP fanatics, Drozdz provides a balanced insight into two scenarios: a bullish outlook, driven by increased popularity and positive legal outcomes, and a bearish view, potentially impacted by declining interest, token design and broader market sell-offs.

The Bull Case

“Cryptocurrencies, in general, are driven largely by news, popularity, and in the case of XRP, court decisions,” says Drozdz. These currencies lack intrinsic value, like physical assets or cash flows. Therefore, their value largely depends on the sentiment of investors.

The recent winning streak against the SEC has already created a ripple effect, pardon the pun, on its price. However, the trend back to the baseline price before the ruling indicates that the market thinks the project might not be out of the woods just yet.

The end of the SEC case in the coming months, especially if the penalties for the institutional sales of XRP are light, could boost XRP’s price, but whether the price will stay high or fall afterwards is yet to be seen.

Beyond the legal realm, the general state of the cryptocurrency market can significantly impact XRP. Drozdz notes: “A large-scale upswing in the crypto world could be a boon for XRP. If other cryptocurrencies rise, XRP could well ride the wave.”

The Bear Case

However, not all potential scenarios are rosy. The resolution of the ongoing litigation could, paradoxically, lead to a decline in XRP’s price.

“Once the excitement around the lawsuit fades, we could see a drop in interest for XRP. That could, in the medium term, negatively impact its price,” Drozdz explains.

While the price currently remains above the level the token was at prior to the ruling, if XRP continues on the trend, it won’t be long before it drops to a new low.

The broader market also presents possible challenges. If a significant sell-off in the cryptocurrency market occurs, this could also depress the value of XRP. “Just as XRP can benefit from a bull market, it’s susceptible to bearish trends in the wider cryptocurrency space,” Drozdz says.

There are also concerns about using XRP in Ripple’s cross-border payment system. The currency is largely redundant and potentially isn’t necessary for the payments system to function. Even if XRP is used to settle payments, the value of XRP does not affect the system’s functionality, as the payments are settled in fiat value. This means that the payment can still be sent as usual whether XRP is $1 or 1 cent, providing little incentive for positive price action.

For this reason, it is easier to perceive long-term value if the token’s design and utility in the system is improved.

What Is Going On With XRP?

XRP has experienced a decline of almost 15% since the start of January, concerning investors as the rest of the market marks 12-month highs. The decline has been attributed to investors taking profits elsewhere amid uncertainty about the project and better opportunities in the market.

The recent approval of bitcoin exchange-traded funds (ETFs) in the US has fuelled interest in other cryptocurrencies, including Ethereum, which is set to have its own set of ETFs approved later this year. However, while Ether has seen a price rally due to anticipated decisions on its ETFs, similar optimism is not evident for XRP, which is not expected to attract an ETF any time soon. This disparity in market expectations contributes to the current price dip for XRP.

Is XRP a Good Investment?

Investing in cryptocurrencies, including XRP, isn’t a decision to be taken lightly. As Drozdz notes, while current events suggest a positive outlook for XRP, particularly with the new bull market in cryptocurrencies, inherent risks are involved.

However, the world of cryptocurrencies is known for its wild swings and unpredictability.

“Investing in XRP is risky and may not be suitable for most investors due to the high price volatility and the difficulty in predicting future trends in the cryptocurrency market,” Drozdz says.

This advice highlights the need for prospective investors to consider their own risk tolerance and financial goals carefully.

“Investment decisions should be made with a clear understanding of the risks involved,” Drozdz says. “For some, XRP could present an exciting opportunity. For others, it may not align with their risk appetite or investment strategy.”

However, erring on the side of caution is always recommended.

“In the world of cryptocurrency, a dash of caution is always wise. Keep a keen eye on the developments surrounding XRP and make informed decisions based on the evolving landscape,” he says.

Whether XRP is a good investment depends mainly on an individual’s financial situation, risk tolerance, and investment goals. As always, it’s imperative to do thorough research and consider seeking advice from a financial advisor before diving into cryptocurrency of any kind.

This article is not an endorsem*nt of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in India and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorized financial advisor.

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