XRP has been on a rollercoaster ride since the Ripple Labs vs. SEC lawsuit, and some bullish XRP price predictions can see the crypto hitting $500. Is this possible?
Key Points:
$XRP has given up almost all of its gains from the massive surge in July.
After Ripple Labs' legal success, many traders expected $XRP to pass $1 with ease.
Some of the most bullish $XRP price predictions expect it to reach $500, but others think this is nonsense.
XRP ($XRP) is up over 50% YTD, but the bulls are still feeling disappointed as the crypto has given up almost all of the massive gains it racked up in July after the SEC appeared to lose its case against Ripple Labs. Despite the short-term bearish trend, some bulls are still convinced that XRP could become a key pillar in the future of a decentralised global financial system, which is why some massive triple-digit price predictions have been emerging. Is a $500 XRP really possible? Or is it crypto hype at its worst?
What Is XRP?
XRP is a layer 1 blockchain project founded by Jed McCaleb and Chris Larsen from Ripple Labs that aims to create a global cryptocurrency payments solution using $XRP as its medium of exchange. XRP is designed to facilitate cross-border payments with minimal fees and a high degree of security. Its founders argue that $XRP embodies Satoshi’s vision of a P2P payments solution that doesn’t require a third-party mediator such as a bank or government institution.
XRP Price History
$XRP’s maximum supply is capped at 100 billion, of which 52 billion are in circulation, and it has a market capitalisation of $27 billion. It reached an all-time high of $3.4 in 2018 and a high of $1.5 during the 2021 bull run.
$XRP’s price has been highly impacted by the SEC lawsuit filed against Ripple Labs in 2020. The suit alleges that Ripple Labs traded unregistered securities through the sale of $XRP; the implications of this claim are believed to be important for the whole industry as it brings into question whether all cryptos can be classified as securities.
The legal proceedings have dragged on for years, and $XRP saw its market capitalisation tumble from over $50 billion in 2018 to well under $20 billion in 2022. In July, a US judge appeared to rule in favour of Ripple Labs, dealing a huge blow to the SEC. The ruling drove a massive crypto rally, leading to $XRP’s price spiking by around 70%. $XRP’s price has since given up most of its July gains. It now trades for $0.51, considerably lower than its $0.82 high last month.
XRP Price Predictions: Can It Reach $500?
For $XRP to reach $500 with its current circulating supply of 52 billion, it would need to reach a market capitalisation of over $25 trillion. That would mean XRP’s market capitalisation needs to exceed the GDP of China. So, in short, it’s impossible that we will see a $500 XRP anytime soon. But that doesn’t mean XRP can’t post impressive gains in the coming years.
CoinCodex expects $XRP to double in 2024 as it moves above $1 and potentially moves above $2 the following year. Changelly is relatively bearish in the short term but expects $XRP to hit a new all-time high in the decade's second half. Other price predictions also expect $XRP to continue to post solid gains, but very few serious voices in the industry have forecast a $500 XRP.
XRP News
The SEC court case appeal and massive $XRP transactions picked up by on-chain trackers have dominated the XRP news cycle.
XRP Whale Activity
According to Whale Alert, several notable $XRP whale transactions have been carried out over the past week. One transaction saw over 29 million tokens moved to an exchange in a single transfer. Many analysts suspect that large transfers onto exchanges have spooked traders in the short term, which is contributing to XRP’s negative price trend.
Ripple Labs Rejects SEC Appeal
The Ripple Labs chief legal officer has formally responded to the SEC’s call for an appeal of the case that saw a US court rule that the majority of $XRP sales didn’t constitute securities trades last month. The statement from Ripple’s legal team claims that there’s no “extraordinary circumstance” that can justify the SEC’s appeal.
Can XRP Reach $500 Dollars?
$XRP is one of the leading cryptocurrencies, and due to the SEC case, it's one of the most talked about tokens in the entire market. As Ripple Labs appears, for now at least, to have an upper hand over the SEC, it's possible that $XRP will experience an impressive rally if an SEC appeal is unsuccessful. However, for the token to reach $500, its market capitalisation would have to reach delirious heights that simply aren’t possible in the near future.
