Although XRP price recorded a 65% increase for the week, the road to $2 is not going to be that easy
When compared to Polkadot, Cardano, and Ethereum, the utility of XRP has consistently been underestimated. However, XRP price gained traction in the last months of the year, thanks to a 65% increase on the week.
Can XRP price rise to $2?
Currently, XRP is being used by many companies for many different purposes. Ripple uses its native token for cross-border remittances, Coil for micro-payments, Blockchain Capital for capital calls, SB Projects for entertainment monetization, and XRP Tip Boot for tips on Twitter and Reddit.
Additionally, banks and other financial institutions use XRP through RippleNet’s On-Demand Liquidity (ODL). The San-Francisco-based blockchain company has tied up with new partners. Furthermore, as the continuing case against the SEC ends, the number of partnerships will eventually increase with more regulatory clarity. In retrospect, the same has the potential to warrant XRP’s valuation.
Interestingly, Ripple also supports the launch and maintenance of stablecoins and CBDCs. The use mentioned above cases of XRP is less well known.
So far, many have argued that Ripple’s momentum has nothing to do with XRP price. However, the price of any given asset results from two key factors – utility value and speculative value. As far as utility is concerned, XRP has performed remarkably well, but what about its speculative value?
According to the indicator, the mean coin age of XRP stood; we can see it is at its ATH level (1001 days) at the time of writing. It is known that this metric depicts the average number of days that all the XRP have stayed in their current addresses. This indicator witnessed a slight deviation during the beginning of August but has negated the same with its recent uptrend. The rise in the average age indicates that most of the HODLers are accumulating XRP at this stage.
The fact that XRP price sideways for a long time and failed to break above $1 shows a similar trend. The Dormant Circulation indicates the number of unique tokens transacted on a given day that has not been moved for a fairly long time. Currently, the 180-day dormant circulation has seen a massive spike throughout late July, and the price of the parallel token feels the drop. However, the same remains at a lower level since early August. In general, this supports the accumulation narrative again.
Meanwhile, XRP’s stock-to-flow ratio has, however, remained on the downside since June. However, looking at the current state of this indicator, it can be said that it would be pretty challenging for XRP to retain its value over the long term.
Before the recent rallies, XRP’s path from here to $2 won’t be so easy. XRP has a series of resistances ($1.4, $1.65, $1.82) to climb above it before its valuation increases.
XRP/USD 4-hour chart | Source: TradingView
XRP continued its bullish price action over the weekend as the price surged over $1 for the first time since mid-May. XRP saw a positive movement for the eleventh day straight as the weekend price climbed up to 37%. At press time, XRP price is trading at $1.28, down slightly over the past 24 hours.
While the price of XRP has been climbing steadily, the ongoing case against Ripple Labs related to its sale of securities has yet to conclude. Most recently, the SEC had requested that Ripple submit its Slack messaging history. The SEC believes that Slack messages yield critically important information, as AZCoin News reported.
The ongoing case has seen Ripple Labs come under extreme pressure from the regulatory body. However, the company has been steadfast in its defense, stating that XRP is not a security. The company has also taken steps to have the case dismissed in its entirety.
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