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Seven Reasons Why It’s Recommended to Hodl XRP

Altcoins

cryptoknowmics.com 17 June 2022 14:22, UTC
  
Reading time: ~4 m

XRP is the native token of the technology giant company, Ripple. It was launched in June 2012. It is presently trading at $0.326. XRP has increased by 3.38% in the past 24 hours, which is a good rise amidst the current crypto market crash. Some of the reasons why is worth to hodl XRP are:

  • Increase in blockchain technology and cryptocurrency adoption.
  • Present return on investment
  • Relatively low volume in circulation
  • A possible rise in cryptocurrencies with banking products
  • Position of the community on CoinMarketCap
  • Possibility of a favorable judgement with its SEC lawsuit
  • Its price prediction data

Increase in Blockchain Technology and Cryptocurrency Adoption

The growth of the cryptocurrency market is worth watching. This rise is given demand for cryptocurrencies that has a tested history of resistance to zero decline. This is due to its longevity and lower volatility. Just like Bitcoin, Ethereum, and Litecoin with lower volatility, new investors in the industry are encouraged to start with them. XRP could be a good option due to its stand in reaching the unbanked and its very low transaction cost.

Present Return on Investment

Since the launch of XRP in June 2012 by the co-founders Chris Larsen and Jed McCaleb, it has had a return on investment of 5013% according to CoinMarketCap. Therefore, XRP initial holders will continue to gain. Also, investors that purchased XRP when it attained its current all-time low price of $0.002802 on July 7th, 2014, have received a 10617% return on investment. At the time of writing, this is worth $106.17 for each $1 investment.

Relatively Low Volume in Circulation

XRP is one of the top 8 cryptocurrencies, according to CoinMarketCap, with a low circulating volume. Its circulating volume is 48.343 billion XRP out of its 100 billion XRP maximum supply. It represents less than 48.4% of its maximum supply. This is comparatively lower than the top cryptocurrencies like Bitcoin and Binance Coin with over 90% of their maximum supply in circulation and Cardano with over 70% of its maximum supply in circulation. In a time of a bullish run, this low supply could favor the coins listed above.

A Possible Rise in the Demand for Cryptocurrencies with Banking Products

Irrespective of the position in some quarters that cryptocurrencies should be banned and that its volatility makes it similar to scams like ponzi schemes, there is still call for the creation of Central Bank Digital Currency's (CBDC's). This rise in countries that are to make favorable laws could lead to its adoption, thereby, giving a rise to the demand for cryptocurrencies with banking system. According to World Bank data, there are about 1.7 billion adults that are unbanked. With the present number of cryptocurrency users that is about 300 million, we can deduce that XRP might be in very high demand soon.

Position of the Community on CoinMarketCap

Another factor that could determine the future of a cryptocurrency is the sentiment in its Community. XRP Community on CoinMarketCap has been very robust and active. Many of the users believe that it is worth to hodl XRP. This attitude has made the coin to be on the watchlist by over 1.522 million users.

Possibility of a Favorable Judgement in the SEC Lawsuit

With the outlook of the present suit between the Security and Exchange Commission (SEC) on whether XRP is a security token could end up favorably. Some investors prior to now thought that the price of XRP would decline heavily due to the suit. However, XRP price has shown good growth during the time of a general market bullish run. The quest by the XRP team to see it resolved soon could surge the price of XRP for its long-term hodlers.

Its Price Prediction Data

 Source: TradingView From the chart above, we can deduce that XRP is in a very critical point that all investors should be watchful of before taking any decision, to avoid losses. We can see that the following could take place: 1) The price of XRP could decline further to around $0.210. From the previous history, we can see that the price rose above the $0.347 mark and even surged above the $0.679 price. If this happens, then the price of XRP has increased by over 250% within a short duration. 2) The present price decline could reverse if the bulls have their way. This could push the price of XRP to around $0.804 at the resistance level. This will represent close to a 280% increase.

Conclusion

Although the price of Ripple's native token XRP has decreased heavily in recent years since it attained its all-time high price of $3.84, long-term hodlers will benefit from its rising demand. This is because of the circular movement of its price. XRP could enter its next phase of a strong bullish run soon when we consider the factors above coupled with the strong commitment by the team led by Ripple's Chief Executive Officer (CEO) Brad Garlinghouse. Therefore, if you own it, then it is wise to hodl XRP.  


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