Ripple’s correction in January was a significant event because it enjoyed key support at the $0.62 level for the two months spanning November and December. Furthermore, over that time period, XRP charted a falling wedge pattern, often a technical indicator of a reversal to a bullish trend.
All the major Ripple news over that time was also neutral to positive, with Ripple Labs announcing new global partnerships and opening up a ritzy new headquarters in San Francisco. However, the Bitcoin price falling in January may have turned up the gravity on altcoin prices this month.
So it is possible that XRP tokens will be over the moon in 2024 if Bitcoin rallies this year, as many expect after the halving.
Here are eight signs in 2024 that XRP price could perform even better this year.
SEC Lawsuit On Its Last Leg
Not only did the Securities and Exchange Commission lose or back down in three major court developments in 2023, but both the SEC and Ripple Labs have been eerily silent ahead of the remedies phase of the case beginning Feb. 12. That’s surprising given how hostile this lawsuit has been since it began in Dec. 2020.
The three big wins for Ripple last year were: 1.) Judge Analisa Torres ruling that XRP tokens sold on secondary markets are not securities, 2.) the SEC losing its appeal of that decision, 3.) the SEC removing Ripple’s founder and its CEO from the lawsuit and leaving just Ripple Labs. These events were XRP price catalysts last year.
Legal expert Fred Rispoli commented on Jan.8, “I’m surprised we haven’t seen any SEC discovery motions filed given how hostile this litigation has been.” Since then, Ripple and the SEC have begun to rankle over the discovery process, but the slow walk to the finish line hardly makes either side seem very agitated.
A final settlement and conclusion to the years-long SEC lawsuit against Ripple Labs might be a strong tailwind for XRP price in 2024.
XRP Global Partnerships Growing
Ripple Labs scored key partnerships in 2023 in the United Kingdom, Asia, and Africa. As these bring more business to RippleNet, demand for Ripple tokens might increase, and the XRP price might enjoy more support. Moreover, the project’s big ambitions for global expansion are just beginning in 2024.
Our partnership with @MFS_Africa enables streamlined, real-time mobile payments for customers across 35 African countries.
Discover how our payments solution delivers fast, secure and low-cost remittances at scale. #ODL #CryptoSolutions https://t.co/Ywd4dzBnZA
— Ripple (@Ripple) January 3, 2023
Ripple is also hard at work facilitating CBDCs for sovereign nations overseas and is attempting to provide 90% of the world’s on-demand liquidity for foreign currency exchanges.
In October, Ripple entered the thriving and lucrative Singapore market after receiving its license from the Pacific Asian nation’s regulatory authority to conduct business as a Major Payment Institution in Singapore.
Then, in November, Ripple announced a partnership with African payments fintech Onafriq, as well as fintechs in the U.K. and Australia, to expand cross-border payment channels for 27 African nations.
In December, Ireland’s financial regulator authorized Ripple to enter the Republic of Ireland as an approved Virtual Asset Provider (VASP). These developments are all tailwinds for the XRP price in 2024.
Supply Design And XRP Price
Like Bitcoin, but unlike Ethereum and Doge, Ripple has a hard supply cap of 10 billion XRP tokens. Every Ripple token will be issued by May 2027 if all goes to plan. That built-in supply scarcity makes Ripple a disinflationary currency like Bitcoin, and it is a massive support for the XRP price.
In addition to the hard supply cap on Ripple, there is a burn mechanism that destroys a small fraction of XRP sent over every transaction to add more deflationary support for XRP price to the tokenomics of the Ripple platform. At the current burn rate, there may be no XRP left… in about 70,000 years.
XRP Price Does Not Reflect XRPL’s Value
The decentralized ledger built around XRP tokens has DeFi and smart contract capabilities. It’s still wildly underdeveloped compared to Ripple competitors for XRP’s market cap. That’s a considerable amount of upside waiting as developers add and grow DApps that live on the XRP Ledger.
XRPL is capable of token issuance, programmable money, smart contracts, and decentralized finance applications (DApps) such as decentralized exchanges (DEX).
XRP Ledger is no cheap toy. Using the same technology, Ripple Labs launched the Ripple CBDC Platform last year. Eight countries are already using it to build central bank digital currencies: The Republic of Palau, Russia, Montenegro, Uruguay, Hong Kong, Japan, New Zealand, and the United Arab Emirates.
XRP Average Transaction Fee: $0.0014
An average transaction fee of $0.0014 to make cross-border payments with XRP is an enormous advantage to the platform. Ripple’s low transaction fees won’t go unnoticed by cryptocurrency investors in 2024.
Solana’s fees, usually less than $0.001, skyrocketed SOL price by 576% in Q4 last year from $17.93 on Sep. 12 to $121.15 on Christmas Day. Its low fees have made it attractive for both individual users and large corporations looking to adopt blockchain.
“Solana’s blockchain network has attributes like high transaction throughput and scalability at low cost that help make it a good candidate for payments and Visa’s stablecoin settlement pilot,” says Visa.
Ripple IPO Could Happen in 2024
A Ripple IPO is not a certainty, but it’s definitely on the table in 2024, especially when things are settled with the SEC lawsuit.
A potential IPO could undoubtedly be a positive catalyst for the price, but the company has so far stated that the US doesn’t provide a favorable regulatory environment, so they might even look abroad.
The Motley Fool reported last month that the SEC lawsuit is part of the hold-up on a Ripple IPO and that the company will not be able to advance on that front until the suit is settled after going to trial this year in April.
Bitcoin 4-Year Market Cycle
The next Bitcoin halving will occur in April 2024. As in its previous 4-year market cycles, that portends a one-and-a-half to two-year bull run for cryptocurrency prices across the board, should history repeat itself. Bitcoin price bull markets are a rising tide that lifts all boats in the cryptocurrency sector.
Cyclicality metrics for Bitcoin and the number two cryptocurrency, Ethereum (ETH), are currently following bullish patterns. These patterns preceded 500% and 1000% rallies in previous years.
There is no way to be sure of the future performance of any investment, but the coincidence of Bitcoin’s halving and the SEC lawsuit moving to trial in April could be rocket fuel for an XRP price launch later this year.
The post 7 Signs Ripple (XRP) Could Explode in 2024 appeared first on CryptoPotato.
