XRP, Possibility Of 5-fold Increase This Year? Analysis Of Key Drivers And Risk Factors

The cryptocurrency media outlet Coingape forecasted on May 20 (local time) that XRP (Ripple) can rise up to 5 times within this year. The analysis is that several key catalysts need to work for XRP, currently at around $2.35, to reach $11.75. A comprehensive look at the four main factors and the concurrently raised risks is as follows.

The first element supporting the potential rise of XRP is the GENIUS Act by the U.S. Congress. If this bill passes, it is expected to promote the growth of Ripple's stablecoin RLUSD and increase demand for XRP. In particular, if RLUSD reaches a scale of $1.5 billion, which is 1% of Tether (USDT) in the stablecoin market, it is analyzed that XRP prices can surge accordingly.

Regulatory uncertainty in the market is expected to be significantly resolved if the lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) concludes positively and the XRP spot ETF is approved. Coingape mentioned that XRP prices can surge up to 580%, similar to past times when SEC adversities were resolved, and theoretically, reaching a maximum of $15.64 is possible. JP Morgan forecasted that up to $8 billion could flow into the XRP ETF.

Ripple recently acquired Hidden Road, a brokerage payment infrastructure company with an annual transaction volume of $3 trillion, for $1.25 billion, and rumors of an acquisition of the stablecoin powerhouse Circle are spreading. These moves can contribute to expanding the real usage demand for XRP and increasing adoption by companies and institutions.

From a technical analysis standpoint, XRP is forming a Bull Flag pattern on the weekly chart, and if it breaks upward, it is evaluated that a rise of over 500% is possible. If Bitcoin rises to $110,000 to $125,000 and an altcoin season arrives, the scenario is that XRP can also join the major upward trend.