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XRP price spike: What are the prospects for Ripple in the near future?

Published
March 18, 2024
Updated
March 18, 2024
< 3 min read

Today we’ll look at XRP, which recently caused a stir and jumped by about 19%, renewing its November 2023 high with a price of $0.73. Next, we’ll talk about its history, technology and prospects.

XRP is designed as part of the Ripple ecosystem and is designed to facilitate fast and cost-effective cross-border payments. Unlike many other cryptocurrencies, XRP focuses on integrating with traditional financial institutions, offering them an alternative way to instantly process cross-border transfers.

History of the Creation of Ripple and XRP

Ripple Labs, the company behind Ripple and XRP, was founded in 2012 by David Schwartz, Jed McCaleb and Arthur Britto. with the ambitious goal of revolutionizing cross-border payments. While most cryptocurrencies were created with an emphasis on decentralization and anonymity, Ripple took a different route, aiming to improve the existing financial system from the inside out.

Technology and Innovation

XRP runs on the XRP Ledger, a decentralized blockchain technology that enables fast and reliable transaction processing. Unlike Bitcoin, which uses Proof of Work, the XRP Ledger uses a consensus mechanism (Ripple Consensus Protocol Algorithm, RPCA) that is powered by a network of communicating servers called validators.That allows consensus to be reached without the need for energy-intensive mining. This makes transactions with XRP not only fast, but also environmentally friendly. For example, XRP can process up to 1,500 transactions per second with the ability to scale to a level comparable to VISA at 24,000 TPS.

How does XRP work?

The key benefit of XRP is its ability to enable instant, reliable and low-cost cross-border payments. RippleNet, a network of payment providers and Ripple's flagship product, allows financial institutions to reduce the time and cost of cross-border transfers.

There was a case with Santander Bank, which used RippleNet and was able to reduce the processing time for payments from the US to Mexico from 2-3 days to just a few seconds, while significantly reducing fees.

How is the Ripple ecosystem developing?

The Ripple ecosystem is expanding through investments in blockchain startups and partnerships with financial institutions. For example, Ripple invested in MoneyGram, demonstrating the use of its technology to speed up cross-border payments. They also launched RippleNet, which brings together more than 300 payment service providers to simplify cross-border transfers. In addition, Ripple X, formerly Xpring, supports developers and startups building applications on top of the XRP Ledger, driving innovation and growth of the ecosystem. To integrate their solutions in the field of cross-border payments, XRP and Ripple actively cooperate with various banks and financial institutions around the world such as Santander, American Express, SBI Holdings, Standard Chartered, PNC Bank and others.

Problems and Challenges

Not everything has gone smoothly in the history of XRP. The story began in 2018, when Ripple Labs began to smoothly separate and position XRP as an independent coin. The logo was rebranded and the trading ticker on exchanges and trading platforms was changed - Ripple (XRP) became XRP (XRP). Ripple Labs management stated that it had nothing to do with the digital asset XRP and received it from the founders of the project. Subsequently, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in December 2020, alleging that XRP was sold as an unregistered security. This legal dispute has caused waves of uncertainty in the market and has affected the price of XRP.

In February 2024, a federal judge granted the SEC requests and ordered Ripple provide financial statements for previous years, as well as meet the regulator's requirements. The SEC lawsuit against Ripple Labs is still pending.

Community and Partnerships

In addition to its many strategic partnerships, XRP has an active and dedicated community of investors, developers, enthusiasts and supporters of the XRP cryptocurrency and Ripple technology.

The community plays a key role in the promotion and support of XRP, creating a variety of platforms for discussion, knowledge sharing and collaboration. The community is very active on social networks, for example, only on Twitter Ripple has 2.7 million subscribers.

The XRP community also has an active participation of developers who create applications using the XRP Ledger, a decentralized blockchain platform for innovation in payments and financial services. A variety of educational materials are being created in the form of YouTube videos, blogs, podcasts and webinars for beginners and those wishing to learn more about XRP and its technology

Separately, we note that the XRP community also participates in charitable initiatives, using XRP to raise funds for various good causes. For example, cooperation with the non-profit organization GiveDirectly. In April 2018, Ripple announced a $29 million donation to support the project, which aims to provide direct financial support to the poorest families in Uganda and Kenya without intermediaries. This donation became one of the largest in the history of cryptocurrencies.

XRP Prospects and Forecasts

Against the backdrop of a rising market, the price of XRP has begun to show strength and buying interest for a long time. This provides prospects for further growth. Over the past week, reports have surfaced on social media that someone transferred 300 million XRP (approximately $187 million) from a Binance account to an unknown wallet on March 8th. On March 11, the price of XRP jumped almost 19% to $0.73 updating its high from November 2023. This caused an increase in optimism and discussions among investors and observers about XRP breaking the $1 level. However, now the price has corrected to $0.63 and may turn out to be an interesting entry position. So what we have at the moment:

Price: $0.63

Marketcap: $33,7B

All-time high: $3.8 (Jan 04, 2018)

All-time low: $0.002802 (Jul 07, 2014)

Growth prospect to new high from current price: 603%

Observers assess the current situation with the XRP price as part of a bearish trend, as the price movement goes down and returns to the support trend line after bouncing off the resistance level. But further forecasts point to a potential bullish breakout in the near term in March. If such a criterion as updating the XRP price to $1 is met in the near future, then the XRP price may increase and consolidate above $1. On the other hand, if the bearish trend continues, then after reaching the level of $1, we may see a short, middle-term correction to $0.75.

In general, analysts are of the opinion that in 2024 the price may exceed $2 against the backdrop of a growing market.

How to buy XRP?

You can buy XRP and other tokens securely and with low commissions using many local currencies and any convenient payment method directly in the Swaps

Conclusion

XRP occupies a unique place in the crypto ecosystem due to its focus on integration with the traditional financial sector. Despite current challenges, XRP's potential to transform international payments remains significant, as demonstrated by major partnerships with renowned companies, a huge community, and Ripple's involvement in people's social lives. XRP has been in the top 6 cryptocurrencies by capitalization for a long time and its value is obvious. All this makes XRP stand out as an interesting asset with growth prospects, provides food for thought, investment, and at least motivates us to pay attention to further developments around Ripple.

This article does not provide financial advice and is for informational purposes only, providing readers with context and an analytical overview. Responsibility for investment decisions rests entirely with readers and it is recommended that a financial advisor or expert be consulted before taking any action.

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