As the cryptocurrency market could continue growing in the next months, the main question is whether some altcoins could reach new highs this year. XRP, the third-largest virtual currency, is one of the most popular digital assets in the market and enthusiasts are wondering whether it would be able to surpass its previous all-time high.
On January 4, 2018, XRP was able to reach a high price of $3.84, meaning that the next all-time high it could move forward and reach $5. In this article, we will share with you some of the reasons that could help XRP reach new highs in the coming years.
Ripple Expansion and Solutions
Ripple, the company that is working in order to expand XRP solutions all over the world, is going to play an important role in how XRP reaches new users, markets and firms. Ripple is offering better solutions to financial companies that want to improve their cross border payments.
With these solutions, firms would be able to send funds to other countries in a fast and easy way. But one of the most promising services is related to the On-Demand Liquidity that requires the XRP virtual currency to work.
In this way, it will be possible for companies to exchange two fiat currencies even if the liquidity between them is very low. This is going to be very useful for remittances and to link countries with low liquidity.
A company would purchase XRP using the local fiat currency. After it, they can send these XRP coins to the destination address in another country and sell the funds for local fiat currency. In this way, in just a few seconds, a transaction between two fiat currencies is processed for low fees and without having to be worried about the liquidity between these two currencies.
If Ripple continues expanding in the future, it will be possible for new companies and firms to start using the XRP virtual currency and process transactions across borders in fast, cheap and easy way.
Could Ripple Reach $5?
As mentioned before, XRP could start increasing in value as soon as other firms purchase the XRP virtual currency. The demand for this asset could exponentially grow if new firms and organizations start using it as an asset to transfer value across borders.
In the last years, XRP has been traded between $0.12 and $3.84, with a long period of time being traded between $0.2 and $0.26. In order for this virtual currency to skyrocket to $5 it would have to expand by 30.2% from its all-time high.
This is less than what Litecoin (LTC) would have to grow if it wants tor each $500 from its all-time high of around $340.
At the time of writing this article, XRP is being traded close to $0.232 and it has a market capitalization of $10.17 billion. At the same time, it has a circulating supply of 43 billion XRP. It is worth mentioning that it would be difficult for XRP to surpass its all-time high if Ripple continues selling large amounts of XRP in the market to finance its operations.
Nonetheless, it is also important for Ripple to get funds that would help the company expand XRP usage and make it easier for XRP to reach new highs in the future.
Bitcoin Halving Effects On XRP
It is clearly going to be necessary a general expansion of the crypto market for XRP to move higher and reach a price of $5 in the future. Indeed, if the market doesn’t grow as a whole, it may be difficult for XRP to reach a new all-time high by itself.
One of the main reasons that could push XRP a new high is related to Bitcoin (BTC) and its halving event that is going to take place in May 2020. With this narrative in place and with a market that is continuously expanding, the XRP virtual currency could eventually reach new highs in the future.
In this article, we have shared how it is possible for XRP to reach $5 as long as Ripple continues to expand XRP usage and if the whole crypto market keeps moving forward with the Bitcoin halving narrative.
If you want to have exposure to XRP, one of the best things you can do is trade using AltSignals crypto trading signals. With this service, you will get the right signals on when to invest in XRP and when to exit your positions.