The year 2022 is coming to a wrap as we are officially nearing Q4. Ripple investors did not have a good return on investment, as Ripple’s market cap crashed from $0.84 to the current price of $0.33. This 60% loss is significant, but compared to the average loss of 75% in the crypto market, XRP did relatively better. Prices though are on the verge of another collapse, which is why in this Ripple price prediction article, we’re going to analyze XRP from a technical perspective. Is it true that Ripple price is risky? Let’s find out.
What is the XRP Token?
XRP is the coin powering the Ripple network. It’s a distributed ledger specially built for fast and cheap transactions. It is often criticized as being centralized, since the company Ripple Labs owns a major part of the tokens, and works on the development and adoption of the protocol. Ripple sees itself as a supporter of banks and financial institutions, in strong contrast to other cryptocurrencies, e.g. Bitcoin, that want to disrupt and replace the status quo of finance. XRP aims to provide fast, cheap, almost instant cross-border payments in the future.
XRP performs BADLY in 2022, but so did other Cryptos!
XRP prices have been on a downtrend ever since the start of the crypto crash back in November 2021. Hopes in XRP to recover were high, but this did not happen. Instead, XRP prices crashed by around 60% YTD. The entire cryptocurrency market performed poorly, as the average crypto lost around 75% YTD.
The XRP token still takes part in the top 10 biggest cryptos by market cap, as it currently stands at #7 with a market cap of around $16.3 billion. The other cryptos that surpassed it are the top 3 stablecoins USDT, USDC, and BUSD, and obviously Bitcoin, Ether and Binance Coin.
Ripple Price Prediction – Will XRP reach 1$ before 2023?
The overall sentiment in the crypto market is currently bearish. Bitcoin broke its psychological price of $20,000 yet again, with analysts predicting lower price targets. There are many events in Q4 of 2022 that might turn things around. However, for XRP to reach a price of 1$, this means a 200% price increase in a matter of 3 months. This is very unrealistic with the current dynamics of the crypto market.
The best case scenario for XRP would be reaching a price of $0.60. On the other hand, even this prediction would fail as the crypto market slips with lower targets. The current path of XRP is towards $0.30, which is a strong support. Breaching this price lower would send prices further lower towards the $0.20 price area.