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Ripple price prediction: how will XRP perform in 2020?

By Connor Freitas

After a bruising 2019, where it was one of the worst-performing digital assets, will the Ripple price prediction for 2020 be any rosier?

Ripple price prediction: how will XRP perform in 2020?

In a world where many cryptocurrencies have faced scrutiny for lacking a purpose, Ripple (and its XRP tokens) has been regarded as a bright spot. The company’s blockchain-based technology is being used to speed up cross-border payments and make them far less expensive. American Express, Santander and MoneyGram are among the big-name financial institutions making use of its infrastructure. But what is the Ripple price prediction for 2020 – and what lies ahead for XRP?

Before we delve into Ripple price analysis, let’s remind ourselves of what the payment protocol does. Founded in 2012, the company’s founders say they were motivated by building an “internet of value” and ensuring that money can move around the world in real time without crippling commission fees. XRP can be used to make transfers across its network – and Ripple says these payments can clear in four seconds, compared with the three to five days it takes using traditional systems.

Ripple price history

To examine XRP future movements, it’s a good idea to look at the past. The cryptocurrency began life in 2012 with a pre-mined supply of 100 billion tokens. Compare this with Bitcoin, which has a maximum supply of 21 million coins which are going to be released between now and 2140.

XRP was trading close to $0.005 (€0.0045, £0.0037) when it launched – and prices remained largely flat until 2017, when the entire crypto industry went through an unprecedented boom. Rapid gains were clocked in April and May 2017 when XRP ballooned to $0.40 per token, with prices settling down around the $0.20 range for the following six months.

Another surge was seen on 13 December 2017, when XRP prices rose 84 per cent in a day from $0.27 to $0.51. And in the weeks that followed, records continued being broken. After vaulting beyond the $1 barrier, XRP ended the year at $2.30, an increase of 38,000 per cent, compared with where it was at the start of 2017. The bull run continued into the first week of January 2018 when prices hit $3.40 – and this remains the all-time high for XRP.

Ripple price history shows that some brutal market corrections were just around the corner. By 8 January 2018, XRP had fallen to $2.46. Prices more than halved to $1.18 by the middle of the month, and the token succumbed to pressure to fall below the $1 mark come February. XRP has failed to surpass this threshold ever since – and despite the odd flurry of interest, occasionally flirting in the $0.40 to $0.60 range – its value has largely been in decline for much of 2018 and 2019.

Ripple currency news: Value and market cap

At the time of writing, XRP’s price stands at $0.23, with a market capitalisation of about $10bn. Although it briefly managed to become the world’s second-largest cryptocurrency by market cap in December 2017, overtaking Ether, the token has steadily remained in third place ever since.

Any Ripple price prediction is tempered by the fact that XRP has had something of an annus horribilis. Whereas most cryptocurrencies have made gains over the year to date at the time of writing – with Bitcoin rising 97.7 per cent and Ethereum by about 10 per cent – XRP has lost a whopping 36 per cent since January 2019. Ripple price analysis suggests that the token is set to end the year with the unwelcome title of being the worst-performing digital asset in the top 10, perhaps aside from XLM.

XRP future: What’s next for Ripple?

A lot of the disquiet concerning XRP lies in how few banking institutions have actually been using this token for international remittances, primarily over fears of regulatory uncertainty. This problem has been compounded by how finance giants such as JPMorgan have been busily building their own digital assets – some of which will offer a service that’s eerily similar to XRP.

If you’ve been following Ripple currency news, you might also have seen the long-running legal battle between the company and the United States Securities and Exchange Commission. Ripple has been accused of selling unregistered securities through its coin offerings of XRP between 2013 and 2015. With other companies paying hefty fines to settle cases, this could weigh heavily on the crypto brand as we head into 2020.

Ripple price prediction 2020

All of this brings us to the XRP price prediction for 2020. The CEO of Ripple, Brad Garlinghouse, recently told Bloomberg that he believes 99 per cent of crypto assets out there will fail – but insisted that he believes his token will endure. Looking ahead to next year, he said: “I don’t think about the price of XRP in the short-term. I think if we can enable XRP to be the most efficient in terms of the speed of a transaction and the cost of a transaction, more and more people will use it.”

Although Garlinghouse’s determination to be in it for the long haul may reassure some investors, other analysts are not as optimistic. The economist Alex Krüger used a linear regression forecast to suggest that XRP’s price could hit zero by February 2020 – although his Ripple XRP prediction has been met with some cynicism.

WalletInvestor, which describes itself as an AI-based forecasting service, predicts that XRP will slide as low as $0.046 by December 2020 – going as far to describe it as “a bad one-year investment”. Its technical analysis claims that XRP will not breach the $1 mark again and that one token could be worth less than four cents by 2024. Meanwhile, TradingBeasts says it believes XRP will grow to $0.32 by the end of 2020, with the token remaining largely flat in 2021 and finishing 2022 at $0.41.

Is Ripple a good investment?

Although there is plenty of excitement surrounding Ripple’s technology, given the fact that it’s used by some of the world’s biggest financial institutions, it’s unclear whether this enthusiasm extends to XRP. Boosting levels of adoption, seeing off competition from mainstream rivals and resolving the SEC lawsuit could prove crucial if the token’s value is going to grow in 2020.

FURTHER READING: What will 2020 hold for Ethereum and its cryptocurrency Ether?

FURTHER READING: Where is the cryptocurrency industry heading in 2020?

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