THE price of XRP has fluctuated in 2021, as it continues to be affected by a lawsuit with the US Securities Exchange Commission (SEC).
We explain how the cryptocurrency’s value is predicted to change in future, and whether it could hit $5 in 2021.
Before we do, keep in mind that buying cryptocurrencies as well as stocks and shares is a very risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the cash.
Cryptocurrencies are highly volatile, so your money can go down as well as up in value in the blink of an eye.
As always, you should only invest in things you understand.
There’s scant regulation for cryptocurrency firms, meaning you won’t have any protection if and when things go wrong.
Plus, there’s no guarantee that you’ll be able to convert crypto assets into cash, as it depends on demand and supply in the market.
What is the price of XRP?
XRP is a type of digital currency that can be used on the Ripple network, and it can be transferred between individuals and banks.
XRP is a coin, while Ripple is a network that allows the transfer of money.
The value of XRP is currently sitting at $1.28, and it’s largely unchanged over the past 24 hours, according to CoinMarketCap.
This is higher than its $0.66 value in February, but still way off its all-time high of $3.29, which it hit on January 4, 2018.
XRP price predictions in 2021
It’s impossible to know how the XRP price will change in future for certain, but that hasn’t stopped experts and investors from making predictions.
Just make sure that you take the predictions with a pinch of salt, as they’re nowhere near guaranteed.
For example, WalletInvestor has set a one-year forecast of $1.70 for XRP and a five-year forecast of $3.347.
While CoinPriceForecast expects the value to hit $2 by the end of 2021 and $3 by the end of 2022.
If you’re waiting for XRP to hit $5, you’ll have to wait until 2025, according to the site.
What factors could affects its price?
A number of factors affect cryptocurrency values, including regulatory crackdowns and comments by high-profile individuals, such as Elon Musk.
In December 2020, the SEC also filed a lawsuit against XRP’s parent company Ripple Labs Inc.
The SEC claims the sales of XRP were illegal unregistered securities trades worth $1.3billion.
While the SEC lawsuit is ongoing, major exchanges such as Kraken, Coinbase and eToro have all suspended trading.
Zak Killermann, crypto expert at Finder, told The Sun: “The outcome of this court case will likely dictate many crypto-regulations to come, so don’t expect the case to end sooner than later.
“Given that XRP has maintained its spot in the top 10 cryptos (by market cap) even with an ongoing legal battle – a victory could help whiplash the market back to bullish overnight.”
While Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, has previously said: “With any nascent technology there will be high risks, as the future of the payments industry is carved out and the lack of current regulation is a warning light.
“Traders should also be cautious as XRP has also been sent higher simply due to speculation over future price rises rather than an underlying use case.”
We explain the dangers of investing in XRP.