XRP’s bullish price trend was driven by the 50 basis point rate cut and the launch of Grayscale’s XRP Trust, while a key deadline for the SEC appeal was set for October 6.

RP’s price action is showing a nice bullish continuation pattern on the daily chart and is expected to break through 40% if market conditions remain favorable. On September 18, the Federal Open Market Committee (FOMC) announced a 50 basis point rate cut and XRP surged 5%. If Ripple succeeds in capturing 50% of the global remittance market and regulatory barriers are reduced, can the XRP price surge to $5?

Growing Remittance Market Could Drive XRP Price to $5

XRP is designed to facilitate fast and low-cost transactions across borders. This is needed for the massive global remittance market, which is expected to reach $11.53 trillion in 2024 and $16.59 trillion by 2028, according to Statista. Digital remittances account for the largest share of digital payments worldwide, followed closely by digital commerce. Mobile POS payments come in last.

The total supply of XRP is 100 billion, but only 56 billion are in circulation. If 100 billion XRP alone were to take on a $16 trillion industry, the price of XRP would be $160. However, there are currently only 56.4 billion in circulation.

Assuming they never put the escrowed tokens into circulation, the price of XRP could rise to $283. In February, Ripple’s CTO detailed Ripple’s ability to effectively “destroy” 40 billion locked XRP by “reserving” the associated accounts.

If the XRP price surges to $283, it would be a 48,900% increase from the current price. However, there is speculation that XRP could become a reserve asset, just like gold is a reserve of the U.S. dollar, which would mean the token would be even more expensive.

Can XRP Price Reach $5?

XRP price has been following an ascending trendline that shows a series of higher lows. This suggests a steady uptrend in the short to medium term.

$0.64 is a key resistance level at the top of the recent range. The price has been consolidating below this level and a breakout above it would push the price to $0.85, a 40% increase from the current price. Although the recent candlestick chart shows consolidation, the rising trendline supports clear upward pressure.

If the XRP price fails to sustain above $0.56, a drop to $0.52, $0.50, and $0.42 is possible. However, the long-term target is also $5.00, and higher gains are possible if the trend persists and the market sentiment is bullish.
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