Ripple Forecast for Jan 2018, How High Can It Go?
Ripple (XRP) has been making waves for the past few weeks and ended 2017 with a bang by overtaking Ethereum and becoming the second most valuable currency after Bitcoin. No one would have imagined that XRP would cross $2.00 in such a short time frame. With XRP having touched a new peak, is Ripple worth buying?
Tides can turn so quickly in this cryptocurrency arena that nobody can predict what is going to happen a few days from now, let alone a few months or years. At the moment, XRP is trading at a record price of over $2.70, after posting gains of more than 900% in the last 30 days.
So the next question on everybody’s mind is: How high can Ripple XRP go? What is the Ripple forecast for January 2018?
Ripple Forecast for January 2018
Just to make it clear in the beginning, it is not easy to arrive at a Ripple price forecast or any other cryptocurrency forecast for that matter. As of now, the only way to value these crypto assets is purely through supply and demand. And as happened in the case of Bitcoin, any inflow of bad news can have a significant impact on prices. The tensions within the Bitcoin community are taking their toll on the BTC price.
Similarly, any influx of bad news shall also result in the downfall of the Ripple XRP price. However, at the moment, there are slim chances of that happening. Good news is flowing from all directions and everybody is very optimistic about this payment network of the future. With news of global investors taking interest in the crypto asset, Ripple XRP has been going up.
A number of banks have been announcing their partnership with Ripple, to reduce their transaction costs using the Ripple network.
In November last year, American Express Company (NYSE:AXP) introduced blockchain-enabled, cross-border, business-to-business payments, partnering with Ripple. Santander U.K. is the selected partner to initiate this new transaction channel, which has the potential to expand substantially in future. (Source: “American Express Introduces Blockchain-Enabled Cross-Border Business-to-Business Payments,” American Express, November 16, 2017.)
However, there is a catch. What institutions like American Express are doing is expressing interest in the Ripple network and not its native token, XRP. There is no clarity as of now about how many banks have expressed intent to use the digital token in the future. And this poses a great challenge to the Ripple price forecast.
Is Ripple XRP Worth Buying?
If it becomes clear that banks are not showing interest in using the XRP digital asset, then there could be downward pressure on the Ripple XRP price in January 2018. But as things stand today in the crypto world, there may be other opportunities for XRP, which may come as a surprise for XRP enthusiasts.
As regulators around the world continue to come down heavily on the rise of cryptos like Bitcoin, the appeal of Ripple XRP is undeniable. It works within the financial system and does not want to disrupt it. Rather, with its advanced technology, it wants to revolutionize the way payments are made throughout the world by financial institutions. This would make a section of crypto traders very comfortable with Ripple XRP.
But again, the not-so-good news about the Ripple XRP price in 2018 is that the Ripple network can be used without the use of XRP, its native token. Although banks like CIBC, Bank of Montreal (NYSE:BMO), and Royal Bank of Canada (NYSE:RY) are experimenting with Ripple technology and maybe with its token XRP for payments, the adoption of XRP on a large scale looks like a remote possibility.
Ripple is primarily a company focused on modernizing global payments and it owns XRP. But its competitive advantage can be short-lived.
Consider that in October last year, JPMorgan Chase & Co. (NYSE:JPM) announced the launch of the Interbank Information Network (IIN), with its two global partners, Royal Bank of Canada and Australia and New Zealand Banking Group (ASX:ANZ).
The new initiative will use blockchain technology to minimize friction in the global payments process. IIN will allow payments to reach beneficiaries faster with fewer steps and better security. (Source: “J.P. Morgan Deploys Blockchain With New Correspondent Banking Network,” JPMorgan Chase & Co., October 16, 2017.)
IIN aims to decrease transaction time and costs, taking advantage of the capabilities offered by Blockchain technology to source and exchange vital information between global banks. This is what Ripple is trying to do. And increased competition from big established financial players could be bad news for the Ripple XRP price.
Ripple services and its token require some more time before their supremacy can be established. Till then, Ripple XRP has one big positive on its side—the regulators. With the continuous inflow of news regarding regulatory oversight on other cryptocurrencies, Ripple XRP investors shall not have this to worry about.
How High Can Ripple XRP Go?
Eventually, if some banks and other financial services firms start using XRP on a large scale, Ripple may soar and Ripple price forecast may shoot up in the coming months. Till then, global investors could just keep on investing and pushing XRP price higher before it comes down to more reasonable levels.
As things stand today, banks are experimenting with Ripple technology and they can use any cryptocurrency to send funds securely across the globe. And the choice of the cryptocurrency shall be determined by liquidity, which is a problem in the case of Ripple XRP.
The current XRP rally may go on for a while before hitting a speed bump, and that could be a good point to consider XRP. But this is only for those crypto enthusiasts who can handle the volatility associated with this digital asset and the cryptocurrency space.
Also Read: Cryptocurrency Price Predictions 2018: Ripple Is the Clear Winner