Ripple (XRP) price shot up last week, ending its two-week consolidation. This move pushed the token closer to kickstarting a bull rally. XRP price analysis using the Fibonacci tool reveals a triple-digit target of $150. Is such a massive rally possible?
Fibonacci Analysis Predicts XRP Price Target of $150
XRP price action between early 2014 and April 2017 created a range, extending from $0.0289 to $0.0618. Using Fibonacci tools to this range reveals that the ATH of the cycle was formed at $3.317, between the 272.2% and 241.4% Fibonacci extension levels.
The second half of 2024 also created a range tightening that led to a massive parabolic rally. This new-formed range is similar to what elapsed between 2014 and 2017 and extends from $0.114 to $2.905. Using the Fibonacci tool reveals that the 272.2% and 241.4% Fibonacci extension levels are formed at $178 and $282.
While a triple-digit territory for Ripple price seems unlikely, let’s take a look at some of the massive fundamental developments noted by the company in the 2024.
XRP Price Forecast Scenarios
To better understand a more rational scenario and price movement of XRP, let’s break down the future of XRP into three scenarios:
Bullish Scenario
In this scenario, XRP price could reach $100 to $150, driven by strong adoption rates. Although unlikely in this cycle, it could be achievable if the ongoing battle between the SEC and Ripple end with favorable regulatory outcomes. The broader crypto market trend also needs to be bullish to push the token to such levels. If XRP reaches $150, its market capitalization will be in the $8 trillion territory, assuming the current circulating supply of 57.41 billion.
Moderate Scenario
In this scenario, XRP price reaches a peak of $20. This outlook is already discussed in a previous CoinGape article and could happen in the ongoing bull cycle. The massive rally to $20 could be history rhyming. Steady adoption rates coupled with positive regulatory outcomes in the SEC vs. Ripple lawsuit could help propel the token higher.
Bearish Scenario
In this scenario, XRP price could drop to $5. However, this outlook is termed “bearish” from a short-term perspective. The reason for this is that XRP remains at $5 despite high adoption rates, favorable regulatory outcomes in the SEC vs. Ripple lawsuit and bullish crypto market trends.
XRP Market Capitalization
XRP’s market capitalization is currently around $136 billion. If XRP reaches $150, its market capitalization will be in the $8.6 trillion region. This would make XRP one of the biggest cryptocurrencies by market capitalization.
Regulatory Influence: Ripple’s Ongoing Battle with the SEC
The SEC vs. Ripple case has entered a critical phase, with the SEC’s opening brief deadline looming. SEC Chair Gensler has bolstered the SEC’s legal enforcement division, promoting seasoned crypto litigators to senior positions, signaling an intent to file the opening brief. This move challenges the Programmatic Sales of XRP ruling, which diluted the SEC’s regulatory authority over crypto exchanges and trading.
A New Era for SEC Leadership
From restarting the crypto bull run to more favorable regulations, President-elect Donald Trump’s victory has helped the cryptocurrency industry widely. With SEC Chair Gensler stepping down on January 20, Trump’s nominated SEC Chair, Paul Atkins, is expected to influence the regulator’s stance on the appeal.
Atkins is considered crypto-friendly and may end the SEC’s era of regulation through enforcement. In fact, the new SEC chair nominee is on the board and is an advisor to a few cryptocurrency projects. As a result, crypto markets are optimistic about the new SEC’s agenda, potentially concluding the Ripple case and other ongoing actions.
Additionally, Ripple’s CEO, Brad Garlinghouse, expressed optimism about the new congress by calling it the most “pro-crypto congress.”
Gensler’s Conflict of Interest & Investigations
Gary Gensler has backpedaled and been at the center of attraction due to his decision to put crypto companies on the line. Couple that with conflicts of interest, it is safe to say that the crypto community is ecstatic to see Gary Gensler’s tenure at SEC Chair end.
Reports also suggest that the Office of Inspector General is investigating potential conflicts of interest within the SEC that may coincide with the agency’s opening brief filing. As a result, Congress & US lawmakers may pressure the SEC to withdraw or end many ongoing crypto-lawsuits.
Ripple’s Real-World Usescases
RippleNet is at the heart of Ripple’s ecosystem that allows global network of banks, financial institutions, and payment providers.
The other flagship product is On-Demand Liquidity (ODL), which leverages XRP to provide liquidity for cross-border payments. This eliminates the need for pre-funded accounts and reduces transaction costs. xRapid is another product that utilizes XRP to facilitate fast and cheap cross-border payments.
Due to these key products that enable both retail and institutions to seamlessly transfer funds across boarders, Ripple has had plenty of partnerships throughout its lifespan. Due to the legal trouble in the US, the payments company has had a massively successful expansion in the MENA and SEA countries. Some of their partners include banks and financial institutions.
If this demand continues to grow, it could drive XRP price up in 2025, potentially to the double or triple-digit targets as mentioned above.
Other Fudamental Developments That Could Boost XRP’s Value
Ripple’s recent developments have been significant. One notable development is the launch of RLUSD on December 17. RLUSD is a stablecoin pegged to the US dollar, and its launch is expected to establish Ripple’s presence in the digital payments space.
Garlinghouse is also bullish on the company’s growth prospects in the US market, and it has highlighted that 75% of Ripple’s open roles are now US-based. The executive noted that Ripple has signed more US deals in the last six weeks of 2024 than in the previous six months.
On the other end of the spectrum, Ripple’s XRP Ledger has also been in the headlines due to its decentralized exchange, cross-currency payments, and payment channel features. XRPL’s smart contract functionality, enabled by the Hooks amendment, is another significant development that has been witnessed recently.
Should You Buy XRP Now?
Although XRP price registered a 238% year-to-date gain, the ongoing consolidation hints at a bull flag. Considering that the bull run is likely to continue through 2025, investors should consider buying XRP. However, the users must also be aware that the crypto market experiences massive volatility that could impact the investment in the short term. Even with a realistic target of $5 or $10, a large portion of the rally is yet to begin.
XRP Price Forecast Timeline
Here’s a possible timeline for XRP price movement:
XRP Price Prediction target of $5 to $20 is achievable before 2025’s first quarter ends. This can be achieved purely due to the crypto market trends. As noted in a previous CoinGape article, if XRP repeats the 2017 price action, it could hit anywhere between $5 to $20.
A target of $50 to $150 or even $200 for XRP is a highly ambitious crypto price prediction and is highly unlikely, despite the Fibonacci analysis. As noted above, if XRP price hits $150, its market cap will be $8.6 trillion, which is not achievable in this bull cycle or the next five years, aka 2030. Perhaps it could reach these levels in a highly hypothetical situation where XRP is used as a currency in the US or by a major institution. Even then, it would take more than a decade plus high optimism to push the token to a triple-digit territory.
Bitcoin was created over a decade ago, and its market cap is nearing the $2 trillion mark. Hence, a $150 target for XRP price in 2025 is highly unlikely.
A grounded and more realistic XRP price analysis for 2025 would include a target of $3 to $5.
Conclusion
In conclusion, XRP price in 2025 depends on important factors like crypto market conditions, legal outcomes, and adoption rates. Although the Fibonacci analysis predicts a triple-digit target of $150, it’s essential to consider external factors such as macroeconomic, geopolitical tension and various other scenarios that affect XRP price. Investors need to research and calculate their risk tolerance before making any investment decisions, especially with the crypto sector that is highly speculative and volatile.
Frequently Asked Questions (FAQs)
Fibonacci analysis predicts a triple-digit target of $150 for XRP price.
RLUSD is a stablecoin pegged to the US dollar, launched by Ripple to establish its presence in digital payments.
A realistic but ambitious target for XRP price is $20 this cycle. Meta Description Fibonacci analysis forecasts XRP price to hit $150. But is this target realistic? Explore Ripple’s recent developments & XRP’s potential.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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