- Wild Predictions Call XRP to Break Above $500
- The Road to Toppling Bitcoin
XRP, Ripple’s native utility token, has been stuck under $0.25 for a number of months now, as traders wait for bullish news to arrive. But what would happen to XRP price if the US court recognized the asset as a commodity and put an end to the ongoing lawsuit?
WILD PREDICTIONS CALL XRP TO BREAK ABOVE $500
XRP has fought for acceptance and is viewed as a wildcard in the world of crypto, possibly bouncing off its current lows. But one of the problems is the status of the actual asset. Now, the discussion on whether the asset is a commodity or not, is returning.
The status of XRP is still open to discussion, but the potential to pronounce it a commodity arrives after the Commodities Futures Trading Commission appointed the status to Ethereum (ETH). Some proponents of Ripple’s case see XRP explode to an extraordinary price of $589 if it’s assigned commodity status, although no supporting evidence has been provided to back up the crazy prediction.
Others are expectant that XRP price could break even further beyond that. According to another XRP twitter proponent, Jungle Inc, he believes the asset could rise as high as $692 per coin based on the expectation that all international payments in the future will use XRP. Currently, it is estimated that $10 trillion are processed each day across the world. If that money flows through XRP, then Jungle Inc believes the asset’s value would surge to nearly $700 per coin.
Right now however, owning XRP is a potential risk, as the asset may still be viewed as an unregistered security. Ripple has been fighting the case that this digital asset is not in any form resembling a security, and should exist outside the scope of the Securities and Exchange Commission.10 BTC & 20,000 Free Spins for every player in mBitcasino’s Winter Cryptoland Adventure!
Ripple continues to be locked in a court case trying to establish the status of XRP. For now, there is no official announcement on the court’s position. The company is trying to defend itself from a class action lawsuit by early investors, who claim to have been offered XRP with promises of future gains.
Realistically, if XRP is considered to be a commodity by the US courts sometime in the near future, then it is likely that we’ll see the price retest last year’s high of $0.50 before potentially breaking towards $1 if FOMO traders pile into the rally.
THE ROAD TO TOPPLING BITCOIN
Ripple, Inc. now awaits the decision on an order to dismiss the claims, which would translate into a court order stating that Ripple did not mislead its investors into buying a security. However, the exact status of the token may be, in the end, a matter of regulatory approval.
The $589 price is derived from the expectation that a legitimate usage of XRP will mean the coin displaces Bitcoin (BTC) in terms of market capitalization. But for now, the decision on the lawsuit may lead to a much smaller rally, with $1 still a target.
XRP has moved slightly up in BTC terms, from lows of 2,500 Satoshi to above 2,700 Satoshi. The coin has also recovered in the past week to above $0.22. However, dramatic price moves are still not in the near future for the asset. Actual XRP usage, even with the status of a commodity, may remain low. Currently, the RippleNet ecosystem does not require owning or transfers in XRP. Trading is also subdued, with volumes of $1.77 billion in 24 hours.
XRP could be in for downward movement as NVT Signal declines
Despite XRP‘s considerable gains this year, the cryptocurrency appears to be stuck in a decline since touching its yearly high of $0.35 earlier this month. After a 23% drop in the days that followed, XRP had a market value of $0.267, at the time of writing.
According to CoinMarketCap, XRP had a market capitalization of over $11.66 billion, while recording a 2.9% decline over the last 24-hours.
XRP 12-hour chart
Source: XRP/USD on TradingView
Towards the start of this month, XRP appeared to have entered a ‘head-and-shoulders’ formation. These patterns usually facilitate bearish outcomes and are an immediate sign that XRP could depreciate in the short-term.
At the time of writing, XRP had a market value of $0.267 and was testing the pattern’s neckline. The cryptocurrency saw relatively strong support at this level throughout the pattern, though this might be the time when XRP dips under it.
The EMA ribbon lines were moving above the price line, which generally means increased resistance at higher price levels for the short-term. The MACD also predicted bearish movements, having maintained its bearish crossover from earlier this month.
With the faster-moving average having dipped under the slower one and persistent bearish momentum in recent times, it is likely the cryptocurrency will break below the pattern in the next few days, which will probably find XRP at the $0.223 level in the week that follows.
The network value to transactions (NVT) ratio is a metric calculated by dividing the asset’s total market capitalization by its daily transaction volume. The NVT signal (NVTS) is derived from this, except instead of using daily transaction volume, a 90-day average is utilized. The metric had been rising since mid-December last year up until around a week ago. This is likely due to the 95% rise in XRP‘s value over the period.
However, data from CoinMetrics showed that the NVTS appeared to be declining, experiencing a 25.8% drop since 13 February. This likely means that the XRP network’s growth is declining and could see increased bearish pressure as the week progresses.
XRP will most probably face some downward movement in the coming days, especially considering bearish signals from the EMA ribbons and MACD. Further, the declining NVT signal also indicates price depreciation in the short-term. This likely means that the coin will break down from the pattern, touching the $0.223 level in the coming week.
XRP to Benefit from VeChain’s Partnership with Bitrue Exchange
VeChain has made an announcement about its major partnership with XRP-friendly Bitrue exchange .
The VeChain Foundation, a non-profit organization behind one of the leading blockchain platform, has joined forces with cryptocurrency exchange Bitrue through its strategic partner and advisor CREAM.
A slew of benefits for VeChain
As part of its strategic partnership with CREAM, Bitrue will list the VTHO token, which is needed for recording data on the VeThor blockchain. A VTHO/BTC pair will go live on Feb. 24. The token will be distributed on a weekly basis.
Bitrue will start supporting tokenized projects that are part of the VIP180 ecosystem. On top of that, Bitrue will also offer ‘exclusive benefits’ for X node holders.
Driving blockchain adoption
In its statement, CREAM claims that VeChain and XRP are both focused on developing enterprise-level use cases for blockchain technology. Bitrue was able to spot “the overlap” in these two projects, which prompted it to embrace VeChain in early 2019.
“Bitrue has been continually impressed by the growing adoption of the VeChainThor blockchain and appreciates the proactive approach that CREAM is taking to strengthen both the CREAMethod and VeChain ecosystem,” Curis Wang, CEO of Bitrue.
Bitrue is one of the most XRP-friendly exchanges. Back in December, it expanded the number of trading pairs with the third biggest cryptocurrency, bringing their total amount to 77.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020
XRP/USD nd the trading week at the level of 0.2717 and continue to move within the correction and the downward channel. Moving averages indicate a bearish trend. However, prices broke through the area between the signal lines up, which indicates pressure from the bulls. At the moment, we should expect an attempt to start the development of the correction and test the support area near 0.2225. Where again we should expect a rebound and continued growth of the cryptocurrency in the region above the level of 0.5005.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020
An additional signal in favor of the growth of XRP/USD quotes in the current trading week February 24 — 28, 2020 will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the support area. Cancellation of the Ripple cryptocurrency growth option will be a fall and a breakdown of the 0.1505 area. This will indicate a breakdown of the support area and a continued decline in XRP/USD quotes with a target below the level of 0.1205. A confirmation of the growth of the cryptocurrency will be a breakdown of the resistance area and closing of quotations above the 0.3695 area, which will indicate a way out of the downward channel.
XRP Forecast and Analysis XRP/USD February 24 — 28, 2020 suggests an attempt to test the support level near the 0.2225 area. Where can we expect continued growth of quotations with a potential target at the level of 0.5005. An additional signal in favor of the fall of Ripple will be a test of the trend line on the relative strength index (RSI). The cancellation of the option to reduce cryptocurrency will be a breakdown of the area of 0.1505. This will indicate a continued decline with a target below the level of 0.1205.