It was awesome news in the early stages of 2021 for XRP investors when the price of the currency surpassed $1. However, a steady decline happened from April 2022 when the currency lost about 60 cents. The Crypto Winter was characterized by a decline that continued into the spring.
For any trader in the market or planning to join, this decline can cause jitters. An XRP prediction is worthwhile in such a situation.
Should traders worry about the decline?
If traders were to look at the history of Crypto winters and were not patient to wait for the decline to end, then there is reason to worry. In November 2021, the market was within the reach of $3 trillion. Uncertainty in the market thereafter prompted investors to steer away from risky investments. Soon later, that momentum would translate into bigger losses as debt-funded investments got liquidated. Fast forward, the market has already declined by over 70%.
The market has declined by a 50% margin several times before. For instance, in December 2013, the market went into a decline that lasted more than 400 days. A new high for the market only arrived some 1,114 days later. There was also a decline in 2018 that lasted up to January 2021.
So if the investor doesn’t have the time, then there is a reason to worry. The current XRP decline may last for a while. Some experts have calculated and speculated the average times for the bottom and new high as 303 days and 945 days respectively. Putting this data into context, there are still about 66 days to the bottom and another 710 days to reach the high. Today’s market factors may be different with the ongoing lawsuit, so these estimates may not be accurate.
What is the price prediction of Ripple?
Come September 2022, the SEC vs. Ripple lawsuit is set to generate momentum and this should affect the price of Ripple. After the case outcome, many exchanges may relist Ripple. If that happens, the price of the coin can reach a high of about $0.47. In case the contrary happens, the currency potential low is in the region of $0.33. All in all, selling and buying market forces could result in the XRP value of $0.40.
That’s for quarter three.
Carrying from the momentum of the third quarter, the fourth quarter could see Ripple close the year at an impressive price of $0.64. The ups and downs of the price will characterize the movement to this price. The opposite based on the lawsuit could also see the coin end this quarter at a value of $0.42. The most likely average price for the digital currency would be $0.52.
Is there still hope for a rally?
The XRP value is at an interesting point where the outcome of the SEC vs. XRP lawsuit could trigger a rally or mar the recovery of the currency. There have been indications of a rebound so proponents can only hope for a positive outcome from the case.
So does investing in one of the most promising coins make sense? It may not be the best investment even in the ideal situation – it can only grow 6 times in the next half-decade. But with a value of below a dollar, this currency will still rally because its demand remains high.
Outlook and conclusion
XRP is one of the most popular cryptocurrencies, but the current rate puts it on the cheaper side. But on the positive side, this is why so many investors can access this currency. Anyone looking for a stress-free entry into crypto investment should try XRP.
Despite the current steady decline, ardent traders need not worry. The coin will eventually come out stronger. According to crypto specialists, some freshness is likely to occur in the XRP segment in case Ripple wins big in the lawsuit with SEC. With the chances of the lawsuit going Ripple’s way being high, there is optimism that the currency will recover recent losses and rally sooner or later.