Ripple Price Prediction: 3 Reasons Why XRP Soared 93% Yesterday

Ripple price forecast
Credits: istock.com/allanswart

Ripple News Update

Late on Tuesday—and through the early morning hours on Wednesday—Ripple prices surged by more than 93%. This brought the Ripple to USD exchange rate to an all-time high of $0.513768.

Many investors were caught off-guard by the sudden increase, but those paying attention to our Ripple news updates were probably less surprised. We called this rally last week.

However, cryptocurrencies are difficult to price, given that there is no cash flow or physical asset on which to base your analysis. Therefore, it’s difficult for investors to know whom to trust.

One of my colleagues, Patrick Brik, uses technical analysis to find emerging trends.

I, on the other hand, prefer to compare the fundamental development of technologies or value propositions in order to see which currency might stimulate maximum demand.

Ripple Price Chart:

ripple price chart for 13 dec

This methodology helped me stay bullish on XRP during weeks, if not months, of sluggish price growth. We highlighted three of these trends in recent weeks, and I believe these trends are largely responsible for Ripple’s price surge.

1) Ripple Locked Up 55 Billion XRP

Investors were worried that Ripple would dump its massive holding of 55 billion XRP, which is one of the reasons that XRP failed to take flight alongside Bitcoin and Ethereum. In order to address these concerns, Ripple locked up its 55 billion XRP in an escrow account. (Source: “Ripple Escrows 55 Billion XRP for Supply Predictability,” Ripple, December 7, 2017.) 

2) Ripple’s Growing Client Base

Ripple’s potential is fast becoming reality, meaning that it isn’t just signing “memorandums of understanding” or building technology. It has created actual payments corridors for American Express Company (NYSE: AXP) and Standard Chartered PLC (LON: STAN). These partnerships are a very good reason to be bullish about XRP. 

3) Ripple Is Going Mainstream

As Ripple enters the public consciousness, we could see a greater number of investors flock to XRP. For example, XRP prices may have been affected by an article on Yahoo! Finance explaining how to buy Ripple coins. There is, after all, a strong link between the perceived availability of a crypto and its price movement. We observed this phenomenon earlier in the year when Litecoin prices surged in the weeks and months after Litecoin was added to Coinbase.

Analyst Take:

This surge in XRP prices is extremely gratifying. There was no shortage of criticism sent our way for continuing to be bullish on this cryptocurrency, so it’s nice to know we were right. It gives us even more confidence in our $2.00 Ripple price prediction for 2018.

Also ReadHow Can I Buy Ripple XRP?