Ripple (XRP Coin) Price Forecast For 2018: Short-Term Drops, But Long-Term Recovery?


Digital payment platform Ripple has experienced a tumultuous first half of 2018. In December 2017, XRP was priced at $0.25 apiece. Just a few weeks later, on January 7, 2018, XRP hit an all time high of $3.39 USD. Since then, it’s been all downhill for Ripple.

Today, XRP sits at around $0.46. The currency continues to occupy the number three spot in terms of overall market cap, sitting just behind bitcoin and Ethereum.

Where could the price of Ripple go next? What does 2018 have in store for the privately-run currency?

Ripple continues to target its settlement system towards banks and global financial institutions. It’s the world’s largest blockchain company dedicating to implementing blockchain at the world’s banks. Some of Ripple’s major partners include banking giants like Santander.

Crypto purists will tell you Ripple isn’t a cryptocurrency because cryptocurrencies are, by definition, decentralized. Nevertheless, most people refer to Ripple (XRP) as a cryptocurrency: it might not be decentralized like other cryptocurrencies, but few cryptocurrencies are 100% decentralized.

In the short-term, bears have brought the price of XRP plummeting down. The last time XRP was worth more than $1 USD was in February 2018.

In the long-term, however, some analysts believe XRP is preparing to significantly recover.

“Ripple aims to replace USD as the common currency for transactions,” explains one analysis at BCFocus.com. “The advantage of using XRP instead of USD is the fact that the process of conversion from any currency to XRP is much cheaper and takes only 4 seconds to conduct the transaction.”

Additionally, the Ripple network can handle 1600 transactions per second – compared to just 7 transactions per second on the original bitcoin (BTC) network. The low exchange fees and fast settlements make Ripple a serious alternative settlement system for the world’s banks.

Despite the recent pessimism, long-term Ripple hodlers might get results around the corner:

The prices are showing resistance at $0.438 and are currently facing a short consolidation phase,” explains BCFocus.com in their technical analysis of the coin. “The major support level is noted at $0.433. At 10:55 UTC today, the coin found a significant hike of 4.39% against the UD Dollar. This has also pumped up the trading volumes by $31 million, which is an increase of 16%. BitBay continues to be the top trading exchange for XRP, standing tall at 16.1%, only to be followed by Binance and HitBTC, who constitute for 9.65% and 8.34% respectively. The MACD is traced in a bullish zone and the 100 EMA line exhibits an uptrend. The significant trading range for today is found to be from $0.438 to $0.458.

What Are The Factors Affecting The Price Of XRP?

In order to gauge the trajectory of Ripple, it’s important to note the factors that could affect the price over the coming months.

Lawsuits

Ripple is fighting a number of different lawsuits. The core of these lawsuits lies in determining whether or not Ripple is a security. Ripple CEO Brad Garlinghouse insists that XRP isn’t a security. Ripple just got hit with a third lawsuit regarding its status as a security. If Ripple is declared to be a security, then it would spell very bad news for the price of XRP. Out of all the top 10 cryptocurrencies by market cap, you could argue that Ripple is the one most likely to be declared a security because it’s the one most privately-owned and centralized – like a stock or conventional security.

Reputation Problems

Ripple has a mixed reputation in the crypto community. As mentioned above, some crypto purists claim XRP can’t be considered a cryptocurrency because it’s too decentralized. As a sign of Ripple’s mixed reputation, major exchange platforms like Coinbase continue to ignore the currency.

SEC Regulation

The SEC needs to determine whether or not cryptocurrencies like Ripple are securities. If the SEC makes a definitive statement on the topic – something they might do by September 2018 – then it could clarify the long-term position on Ripple going forward.

Partnerships

Ripple lives and dies by its partnerships. The organization has already partnered with major financial institutions worldwide. These financial institutions love Ripple’s cheap, efficient, fast, and secure blockchain-based settlement system. It has the potential to lower costs for banks and institutions worldwide, and that’s why Ripple is actively pursuing partnerships.

The Technology

Ripple’s technology, like most technologies, continues to improve over time. If the platform can continue to offer fast and secure transactions with minimal cost, it will continue to be an attractive option for firms.

Exchange Listings

It’s unusual that one of the world’s largest exchanges, Coinbase, has not yet listed Ripple. If Coinbase’s much-anticipated Ripple listing ever takes place, then it could cause the price of Ripple to skyrocket.

Competitors

The blockchain space is highly competitive, to say the least. Stellar Lumens (XLM) is frequently compared with Ripple due to its fast and cheap transactions and high scalability. Swift, established in 1973, is another close competitor. Existing crypto giants like bitcoin can also considered competitors.

Where Does XRP Go From Here?

Short-term bears have dropped crypto values across the board. XRP has been victimized as much as any altcoin. The long-term position on XRP, however, may be more positive. We don’t know where XRP will go from here – but if the company keeps achieving successful partnerships and improving its technology while deflecting criticisms of centralization and its status as a security, then the future could be bright for XRP.

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