The cryptocurrency space is a financial realm rife with volatility and lately, the native token of the XRP Ledger, $XRP, has been capturing attention amid a wider cryptocurrency market recovery, with one analyst predicting the price of XRP could surge to $6.29 in the future.
In a post on the microblogging platform X (formerly known as Twitter) that the pseudonymous cryptocurrency analyst CoinsKid shared with their over 130,000 followers, they detail that if XRP manages to breakout above its current resistance it may increase its chance of taking out a high seen in April 2021, opening the way to $6.29 per token.
The analyst’s reference to the “red line” alludes to a crucial resistance point in his chart, which if XRP can break through may set the stage for its potential price surge. To get to the $6.29 price level, however, XRP would first need to surge toward $1, as it’s currently trading at $0.483 per token.
In a separate post, the analyst analyzed XRP’s monthly chart and concluded it “may be gearing up for a run to the red line,” meaning it could be about to test its resistance for a potential breakout.
Notably institutional investors have been betting on XRP, with investment products focusing on the token seeing $700,000 of inflows last week, while overall cryptocurrency investment products saw $59 million of outflows during the same period.
Rising interest in the cryptocurrency started after a ruling from Judge Analisa Torres in the case the U.S. Securities and Exchange Commission (SEC) brought against XRP, differentiating between sales to institutional investors and on exchanges, noting the token itself isn’t necessarily a security.
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The ruling saw a number of cryptocurrency exchanges including Coinbase, Kraken, and Gemini relist the token, significantly boosting its liquidity.
The XRP Ledger could soon see its transaction throughput surge from around 1,500 transactions per second to an impressive 3,400 transactions per second (TPS), bolstered by upgrades that are soon set to be deployed.
As CryptoGlobe reported, XRP token holders could soon start being able to earn income on-chain after the highly-anticipated XLS-30d amendment is launched, which is set to would introduce a built-in automated market maker (AMM) trading platform into the ledger.
An AMM is a platform that allows for cryptocurrency trading in a permissionless way using liquidity pools, rather than traditional order books. Liquidity pools are shared pools of two or more tokens supplied by users that are used for trades. The prices of tokens within the pool are determined through the use of blockchain oracles.
Investors who add tokens to liquidity pools receive a share of the fees collected from each trade, but the revenue comes with the risk of impermanent loss.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2023/09/xrp-price-could-surge-over-1200-to-6-29-if-it-breaks-key-resistance-analyst-says/
