XRP (XRP) has lots of publicity relative to the rest of the market. However, this publicity has brought with it loads of expectations on what XRP can achieve as an investment. For instance, there is the figure of $589 that many have now come to take as a fact. On most XRP forums, this figure is always up for discussion, and people do actually believe in it. The only problem is that putting money in XRP simply on the strength of what someone, supposedly an insider, said is nothing but gambling. Here’s why.
First, no one in the finance world, even the most successful investors can say with certainty that an asset will hit a specific price point. There are just so many variables involved to accurately pinpoint a price. What is usually predicted is the possible direction, and a probable price range, usually a previous support or resistance level. As such trying to predict a figure like $589, which is way higher than anything XRP has ever achieved is pure gambling. It even gets crazier that many believe that XRP (XRP) will hit this price before the end of the year, which is less than 90 days away.
Essentially, this would mean that the XRP would gain a market cap that is bigger than the U.S economy in less than 90 days. For such a thing to happen, the current world order as we know it would have to go down in under 2 and a half months. The dollar would be significantly devalued, and the world economy would see a radical shift and start using XRP. Are there any signs of this happening? Absolutely not. The U.S dollar is getting stronger due to the recent rate hikes, and the stock markets are holding on strongly. There are also no signs of a mass exodus by banks from SWIFT to XRapid.
It’s a long-term game
To avoid burning fingers in the XRP game, it is best to take a more rational approach to the market. Rather than getting fixated on a specific price that has no real basis, it is best to buy knowing that this is a long-term game. Sure, XRP has the fundamentals to grow, but that will be premised on a number of factors.
The first one is regulatory clarity. XRP still has some regulatory hurdles to go through, especially in the U.S, where the SEC is yet to make a decision as to whether XRP is a security or not. Once the regulations are right, the next thing to watch out for is the rate of adoption. As adoption grows, so will the value of XRP over time. An investor putting in money on this basis stands to reap in the long-run.
While someone can argue that XRP (XRP) could do a 2017 kind of rally and hit $589, one also need to be cognizant of the factors discussed above, and also the fact that 2017 was unique. It was unique in the sense that crypto was this new thing that everyone wanted to get involved in. Right now lots of people know about crypto, but after getting burnt this year, the mad rush to crypto may have died down. The next wave of growth will most likely be driven by actual usage, and the entry of institutional money, and may not be as drastic as many people would wish.