A widely followed market commentator and YouTuber with the handle “ModernInvest” has expressed that it would be strange if XRP fails to crack $20 in this bull season.
The price of XRP is swiftly recovering from significant selling pressure that nearly forced its value towards the $0.50 level earlier this week. It is trading at $0.5322 at press time, posting a 1.45% gain in the last 24 hours.
This figure marks a notable improvement from the low of $0.5101 that XRP tested on Thursday, the day the SEC announced its intention to appeal. However, XRP is still nursing a 9.5% loss in its weekly performance.
While the SEC’s action temporarily stalled XRP’s ongoing bull run, market watchers like ModernInvest remain confident about XRP’s trajectory in this cycle.
In a recent video, the analyst argued that it would indeed be “weird” if XRP’s bull run did not propel it to at least $20. He emphasized that, given all the momentum in the XRP ecosystem, it would be odd for XRP to fail to reach such a high mark.
Thesis for Why XRP Should Reach $20 This Season
First, he noted that every transaction on the XRP network burns XRP. He highlighted that the quantity of burned XRP tokens would only increase if the XRP network began processing transactions worth billions of dollars monthly, particularly with the anticipated launch of the Ripple RLUSD stablecoin.
Ripple’s RLUSD stablecoin is set to launch in the final quarter of 2024. It will initially be available exclusively on the XRP Ledger and Ethereum. Industry experts have outlined several ways RLUSD could benefit XRP, including increased liquidity.
As of today, approximately 12.88 million XRP tokens have been burned from its maximum supply of 100 billion tokens. This burn figure continues to grow with each transaction on the XRP network.
Given that no new tokens are introduced into circulation while existing tokens are burned, XRP is characterized as operating under a deflationary model.
Market observers like ModernInvest believe this deflationary model is a bullish factor for XRP. The burn rate is expected to increase with larger transactions on the network, limiting the available supply of XRP and supporting a higher price.
Another factor ModernInvest cited to support his bullish outlook for XRP is the recently launched Grayscale XRP Trust. The trust’s net asset value surged by over 11% after its first week, signaling increased institutional interest. The Trust currently has assets under management (AUM) of $1,985,776.
Additionally, an XRP ETF is now in the works, as Bitwise has filed an application with the SEC. This is expected to further heighten demand for XRP, supporting the price growth thesis.
ModernInvest also noted that, beyond institutional interest, retail investors and crypto whales are significantly accumulating XRP.
XRP Needs 3,657% Growth
Based on these factors, ModernInvest expressed a strong belief that failing to rally to $20 by next year would be “weird.” Notably, XRP would need to rally by 3,657% from its current price level to reach $20.
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Source: https://thecryptobasic.com/2024/10/05/expert-says-it-would-be-weird-if-xrp-doesnt-hit-20-this-bull-run/?utm_source=rss&utm_medium=rss&utm_campaign=expert-says-it-would-be-weird-if-xrp-doesnt-hit-20-this-bull-run