Key Takeaways
- XRP institutional adoption could catalyse a major price rally to the upside.
- With XRP’s ETF approval, banks leveraging XRP ledger technology to build cross-border payments could help it reach new price heights.
- XRP’s technical indicators show a market sentiment change following recent price bounce from lows as whales gain interest.
Ripple (XRP) has been one of the most outstanding performers in the last few months. It has captured the hearts of many traders and investors since its rally from $0.56, breaking above its psychological area of $1 before Donald Trump’s re-election as U.S. president. The price of XRP hit a historical high of $3.48.
While such price action was welcomed, many traders and investors still strongly believe XRP is undervalued at this current price. There is speculation that the price will hit a high of $10 to $100 following strong technical and fundamental factors.
XRP has struggled in the last three months, crashing towards a region of $1.6 before making a move to the upside, breaking above key resistance of $2.5, which has held the price of XRP from trending to the upside. Crypto experts and investors are speculating a strong rally towards $10 and more, also suggesting the price of XRP seems too cheap at its current price of sub-$10.
Here are some reasons why many experts suggest the current XRP price is too cheap and has upside potential.
The Suppression Theory
A crypto analyst and XRP enthusiast has spoken about the price of XRP not matching expectations at this current level, following fundamentals such as banks getting attracted to the potential of XRP, Ripple stablecoin (RLUSD), and other fundamentals that would have impacted the price of XRP.
There has also been news around the media of integrating XRP into the Swift system, which would become a major upset in the crypto market. This feature would allow for the ease of cross-border payment and swapping of fiat to crypto. While this feature has not been implemented, there is no doubt that the price of XRP trading below $2 to $5 would not see an astronomical rally when all of this fundamental news has been implemented.
Institutional Adoption And Derivative Market
Integration of institutional financial systems on the XRP ledger platform would be a game-changer for the XRP ecosystem and its price. This would facilitate fast, low-cost cross-border payments, and institutions like the Japanese banking network are showing interest.
According to Crypto commentator Zach Rector, Ripple’s already operational platform has led to speculation that XRP will capture around $150 trillion of the cross-border payment market in 2030 and generate billions of dollars in the escrow business. He further hinted that the approval of XRP ETF adoption could see around $9B in revenue in the first quarter, allowing for much adoption abroad for XRP.
With the XRP team also tipped to become a major player in the tokenisation industry, the XRP price could see much adoption, leading its price to break past $10 and reach a high of $25 before the end of 2025.
Technical Analysis And Market Expectations
The XRP price is beginning to look bullish after it crashed towards $1.6. It remained in the price range for weeks, breaking out to a high of $2.6, as whale and active addresses are starting to show much interest.
Market analyst Ali Martinez, on his X account, has speculated that a breakout for XRP above $3 could see the price rally towards $15 and beyond, as fundamental and technical indicators have been supporting a bullish price rally for XRP for days now.
Although the possibility of XRP hitting $100 remains out of reach, we cannot write off its potential, as institutions are showing incredible interest in XRP tokens.
