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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.