Ripple Forecast: how to predict price and invest
Published: March 19, 2021 by Andrew
More and more people would like to know the price predictions on Ripple. Where can the value of XRP, the real cryptocurrency of the “Ripple” system go? Can Ripple follow in the footsteps of Bitcoin up to a value of 40 thousand euros per piece? How to do correct Ripple Forecast?
These are important questions and they are especially so for those who see Ripple as an investment opportunity.
In the course of this guide we talk about Ripple forecasts by analyzing:
- What analysts expect for 2021
- Why it can be so convenient to use it to make investments
- Which platforms to use to operate at best
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Ripple Forecast: XRP currency
Ripple in a short time has climbed the charts of the market capitalization, or the total value of its coins on the market.
It is an atypical cryptocurrency: Ripple is partly a system linked to banks, which takes it away from the classic concept of “virtual currency”.
However, although Ripple is frowned upon by cryptocurrency purists, such a situation brings several advantages, such as a more stable market value, which facilitates the adoption of XRP at different levels, starting with banks and ending with other types of banking institutions.
In other words, unlike classic cryptocurrencies such as Bitcoin or Ethereum, Ripple has a form of centralization, i.e. management by a central body. Therefore, it is not a completely free project.
Ripple Forecast: is it worth investing?
It can be said with certainty that XRPs are still one of the most promising digital currencies to invest in.
The Ripple project is an extremely ambitious idea. The creators of the platform aim to change the banking system as we know it. In fact, Ripple is proposed as an alternative to the SWIFT system, that is, the system that allows interbank telecommunications at an international level.
Using SWIFT it is possible to transfer money from one point of the world to another by paying some commissions and waiting for the technical time for the transfer. SWIFT is therefore a banking intermediary who does not hold accounts or payments, but only acts as an intermediary.
Ripple is proposed as a valid alternative to this outdated system, and the project started to attack SWIFT with a very specific idea: to offer money transfers that are much cheaper and much faster than in the past. This would be a really important step forward.
Ripple Forecast: CFD Trading
More and more banks are entering into agreements with Ripple in order to hire its services and thus be able to bring benefits and savings to their customers.
When a new revolutionary system like Ripple’s is now changing the way of banking, this means that it is potentially a project ready to make the proverbial “bang”.
Precisely for this reason many are aiming for it. But what is the best way to invest in Ripple?
The best system to adopt is definitely the online trading of CFDs on Ripple. Thanks to CFDs you can both buy and sell XRP and profit from it practically instantaneously.
Furthermore, CFDs as a tool to invest are at the top for a very simple reason, they allow you to make effective Ripple Forecast and now we explain why.
Using CFDs is very simple. There are trading platforms specially created to buy and sell assets on CFDs with a few clicks of your mouse.
Moreover, these platforms have been specially designed to make Ripple Forecast, providing traders with numerous tools that allow them to understand the future price trend well in advance.
Thanks to trading platforms such as that of eToro (specialized CFD broker) it is possible to freely use contracts for difference for the trading of cryptocurrencies, but also to make market analyzes on the basis of which to make investment choices.
The great advantage of CFDs is the possibility of being able to earn both when the price of Ripples rises and when it falls. Here’s how it works:
- Long positions: contracts for difference earn when the price of an asset rises after opening a long position, or a purchase. The mechanism is simple: do you buy Ripple when they are worth 1 €? If you resell them when they are worth € 1.50 then you have made a capital gain in proportion to this price change.
- Short Position: in the same way you can earn from the sale. The mechanism is simple, it is that of “short selling”. If you foresee that the price of 1 € Ripples could go down when you open a short position and the more the value of the XRP drops the more you will earn.
For investors used to thinking of trading as it was in the past, the possibility of being able to make profits even by selling will seem absurd. Yet it is perfectly and legally possible using CFDs on platforms like eToro's.
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How to do Ripple Forecast
Let’s get to the point now. We explain how to use the two main methods to analyze Ripple’s price and predict what its trend will be.
With the fundamental analysis on Ripple it is possible to know and analyze the factors that influence the price of Ripple from the outside. To date, at least 6 factors are known that can change the price of the cryptocurrency:
- Laws and Regulations on cryptocurrencies – i.e. the regulatory discipline. Whenever a government makes official statements on the possible regulation of digital currencies, the price of Ripple is immediately affected, also because the whole world of cryptocurrencies is affected. Whenever there are restrictions on the use of XRPs, prices change dramatically.
- Media and News – media hype can easily lead to a price increase, while negative news can lead to a drop in the price. For example, news about hacker attacks on cryptocurrency-related websites and services can panic among Ripple users, causing price drops. Being Ripple an atypical cryptocurrency, however, this factor has less impact.
- Stability – most people want a safe and sustainable network, where there is no risk of losing their money. Unlike traditional currencies such as euros and dollars, however, cryptocurrencies continue to be perceived as “economic bubbles” ready to burst. To get around this problem, just choose CFDs as a form of investment and earn even when the price drops. To avoid excessive losses then, just put the Stop Loss.
- Laws of the market – The price of XRPs largely depends on the trend of supply and demand, as happens in any market. This means that high demand and low supply often lead to a price increase. However, note that to “simplify” (only in some ways) the context is the evidence that Ripples have a controlled supply: they cannot be undermined! This helps to give stability to the value of the coin.
- Commercial acceptance – this is a decisive factor in influencing the price of cryptocurrencies. When some of the most famous banks began accepting Ripple as a transaction tool, its prices took advantage. Therefore, an increase in the number of banks and financial institutions that accept this type of instrument will certainly lead to an increase in the price.
- Technological changes – Technological advances and innovations have the ability to significantly influence the price of cryptocurrencies. For example, the integration of Ripple into the payment system of Amazon or a similar platform could raise awareness and stimulate a great interest in digital currencies in most people. Additionally, many startups have started using cryptocurrency-accepting crowdfunding platforms, with Ethereum being the best example. However, Ripple could soon become part of this type of project.
There is also a second method even more appreciated by investors for making Ripple Forecast and this is the technical analysis on the XRP price chart, the most commonly cited cryptocurrency of the Ripple project.
Here, what you can see in the image above is a price chart in the form of Japanese candlesticks, which is the key tool on the basis of which it is possible to carry out technical analysis.
By observing this type of charts, financial analysts are able to draw very precise conclusions on what the price of Ripple will be.
Let’s take 2 examples of technical analysis tools that can be very useful when analyzing the Ripple chart:
Supports and resistances – The so-called supports and resistances are extremely useful for understanding Ripple’s future, especially in the short term. These are graphical trading indicators that can be used simply by plotting them on the chart.
- A support represents a share of the market that the price fails to break out of, causing bullish rebounds.
- A resistance is a share of the market that the price fails to surpass to the upside, causing bearish bounces.
These areas are formed continuously in any market and it is very easy to identify them even on the Ripple chart. In the image below you can easily see a support drawn with a horizontal blue line on the Ripple chart of the eToro platform:
In this case, when the support is exceeded by the price chart from top to bottom by that long red candle, the market has sent a bearish signal, so it is necessary to make a “Short” type investment as we have indicated above.
Moving Average – Similarly, a very good indicator for making Ripple Forecast is the moving average. Also in this case we have a very simple indicator to read because it is only a curve that follows the price trend. When this intersects with candles it generates trading signals similar to supports and resistances:
- If the price exceeds its moving average from top to bottom, the signal is bearish and you need to enter the Short market.
- If the price exceeds its moving average from the bottom up, the signal is bullish and it is advisable to open a Long position.
Ripple Forecast: SEC
Ripple rose to the headlines in late 2020 for the ongoing lawsuit with the SEC (Securities and Exchange Commission, US supervisory body).
Ripple’s founders have been accused of the movement of unregistered securities, an accusation that assimilates XRP tokens to financial assets (security tokens) and not to fungible assets, with their own utility (utility token). Garlinghouse and Larsen denied the accusation, arguing the difference between the XRPs and the assets with which the SEC wanted to equate them.
It should be noted that the issue does not specifically concern XRP, whose structure and validity are beyond question. However, these are macroeconomic events that inevitably end up influencing the prices of the cryptocurrency.
In fact, since the announcement, many exchanges have eliminated the possibility of buying XRP tokens, only to reintroduce them once the situation has become clearer.
In February 2021, the company deposited its own subsidiary in Wyoming, a friend of the cryptocurrency sector that had previously offered shelter to Kraken in the past.
The SEC’s accusatory system would be based on the centralized nature of Ripple: compared to the Bitcoin structure, in fact, the supernodes on the XRP blockchain accept transactions without the need for participation by third parties. On the other hand, Ripple continues on its own line of defense, declaring that the sale of its tokens never met the requirements that would have made an ICO necessary and above all it has never activated a fundraiser (through the sale of tokens) with the promise of future profits.
The SEC’s thesis therefore becomes weaker as the days go by and many now believe that in the end it will not be the commission that wins. The proof is given by the bullish idea that Ripple XRP has had from December 2020 onwards, following the renewed confidence on the part of investors.
Ripple Forecast 2021
The general idea is that Ripple is in a clear recovery phase. Investors after the latest news have started buying again, tripling the value of XRP compared to the price seen in the days immediately following the complaint made by the SEC.
The peak that can be seen on February 1 was caused by a pump attempt by the Reddit community which, in the previous weeks, had operated in the same way on Gamestop shares.
In that case, however, the artificial growth and with values out of the market was a success, even if it lasted a few days, able to make the organizers rich thanks to an almost perfect coordination. Here, however, the attempt failed when those who had bought the token in the days prior to February 1 (date designated for the pump) trying to move forward, began to sell XRP at the first appreciation.
The domino effect that followed led to a mass sale and a consequent equally sudden drop in value.
However, XRP was still able to recover and, despite the recent volatility, it seems to have triggered an underlying bullish trend that could also have the energy to break through the closest resistances and thus return to climb the market rankings.
Driving the optimism of investors, in addition to what appears to be positive news on the front of the ongoing lawsuit with the SEC, are the news on the implementation of a ledger that could be used by central banks for the issuance of digital currency. This would lead to a real revolution in the field of classic currencies, supported in the long term by the technology that currently allows to create XRP tokens.
While the cryptocurrency community always has very positive views on Bitcoin, views on Ripple can be mixed.
Those involved in investments (therefore earning money with Ripple) have deeply negative opinions, some extremists in the world of cryptocurrencies accuse Ripple of being a centralized cryptocurrency. In some cases, Ripple has been accused of not even being a cryptocurrency.
From our point of view, we are not interested in this controversy. The opinions on Ripple of those who use cryptocurrencies as an investment are good. The opinions of extremists (usually bankruptcies or keyboard lions) are of no use to anyone.
Making precise Ripple Forecast on the performance of a cryptocurrency is not easy. These are very volatile assets and influenced by many factors internal and external to the market.
However, as we have seen, using the right tools it is possible to make excellent forecasts on Ripple which turn out to be very useful in the investment phase.
Furthermore, we have seen that investing through brokers like eToro there are excellent solutions both for those who want to do manual trading and automatic through the copy of other traders.
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First of all, it is necessary to inquire at the level of fundamental analysis, to know all the news in this regard, and then with the technical analysis to check the performance of the stock. We recommend avoiding cryptocurrency forums to collect information, they are almost never reliable.
No, obviously you need a minimum of experience and familiarity with the investment platform and with the main news portals.
Many analysts are betting on Ripple in 2021 even if we have to take into account any legal problems that may arise.
The main reason is that its blockchain is optimized for digital payments and aims to replace the old SWIFT system.