Ripple (XRP) price prediction 2020
Ripple (XRP) has been in the news often this year. Most news reports are about partnerships with financial institutions, such as banks. And that is precisely why XRP holders are positive about the future: the prediction is that the more support there is, the higher the value will rise.
Back to basics
But first: what is Ripple anyway? XRP and Ripple are often confused. However, there is a clear distinction. Ripple is the company behind the token XRP, which is used on the Ripple network. Ripple’s goal is to connect the current financial world with cryptocurrency. In terms of ideology, Ripple is therefore a bit of an odd man out.
What makes XRP stand out from other coins as well is that XRP doesn’t use blockchain and that it isn’t mined. XRP uses a technology that is similar to that of blockchain, and all tokens are put into circulation by the Ripple company itself.
Enough background information for now, what can we expect from XRP and Ripple in 2020?
What will the XRP price do in the near future?
If only we could answer that question. Unfortunately we don’t own a crystal ball, so making exact predictions is impossible, but we can tell you what factors might affect the price.
There are indicators of how the price can develop. Traditionally, news has a lot of influence on the price. In May 2019, Coinbase tweeted that New York customers can now also purchase XRP through their platform. On the same day, the value increased by 45 percent!
XRP (XRP) is now available to Coinbase users who are New York residents. New Yorkers can now log in to buy, sell, convert, send, receive, or store XRP on https://t.co/bCG11KMQ6s or using our iOS and Android apps.https://t.co/5VE1WklrWo pic.twitter.com/Zp5odgaoHs— Coinbase (@coinbase) May 13, 2019
If Ripple announces a new product or a new collaboration in 2020, this could make the price rise again, but of course this can’t be guaranteed.
Collaborations with financial institutions are particularly interesting to keep an eye on. Suppose a few new banks or large organizations announce that they want to use the Ripple payment network, that will mean more XRP is needed, which will probably lead to a price increase.
But there is more than just fundamental news. You can also look at the price movements and draw conclusions from them. This is called a technical analysis.
A technical analysis focuses on analysing previous and current price movements, with the aim of making a prediction on future price movements. Technical analyses can be applied to shares, stocks, indexes, currencies, and also XRP!
Always in the top 3
XRP strengthened its position in the top three of all cryptos in 2018 and 2019. This position is defined by the total value of the current available amount of XRP.
Ripple owes this listing to, among other things, their partnerships. Ripple currently has partnerships with 150 banks and financial institutions, including American Express, Bank of America, RBC, Santander, the IMF, and the World Bank.
In addition, it is also important to look at what competitors are doing. There are large parties who have the same ideas as Ripple. For example JP Morgan, they are working on the JP Morgan Coin.
IBM is also working on its own payment system. If one of these parties succeeds in delivering a working product, this can influence the price. Certainly because these parties have all built up a huge network already, and enjoy great confidence within their own industry.
Only invest an amount that you can afford to lose
Would you like to enter the exciting world of cryptocurrencies? Keep in mind to only invest an amount of money that you can afford to lose. XRP is interesting and exciting because the price is so volatile. However, this also makes an investment very risky. So think carefully about the amount you want to invest.