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A community commentator outlines factors contributing to the pessimism around a potential XRP rise to $1,000, but remains confident in XRP’s prospects.
Notably, XRP has struggled below the $1 mark since December 2021. Despite spiking to $0.93 last July, it could not reclaim $1 due to buyer exhaustion. Discouragingly, XRP recently slipped below the $0.50 territory, further reducing its chances of capturing $1.
Despite these challenges, some analysts project a significant rally for XRP, with predictions ranging from $5 to an ambitious $200. More audaciously, a segment of commentators foresees a $1,000 price, a notion that has sparked widespread skepticism within the community.
An XRP community account known as “Common Sense Crypto” recently addressed this skepticism. He outlined why many doubt the possibility of XRP reaching the $1,000 milestone. His commentary discussed several factors that contribute to investor pessimism.
Why do so many people doubt $xrp could reach $1000?
1.non-belief $xrp never moves & no bank will use it
2.previous market-cap & cycle will never change
3.belief that 100 billion $xrp is to much
4.They will create their own system no need for $xrp
5.Ripple will always manipulate…— Common Sense Crypto (@TheCSCrypto) June 20, 2024
Factors Behind the Skepticism
First, there is a general lack of belief in XRP’s potential to move significantly, coupled with skepticism about whether any bank will adopt it. The belief that banks and financial institutions will adopt XRP on a large scale remains a contentious issue.
While Ripple has made strides in forming partnerships with some institutions, widespread adoption is far from guaranteed. Competing technologies and regulatory challenges could impede the envisioned growth trajectory for XRP. Some critics argue that financial institutions might develop their own systems, rendering XRP unnecessary.
Historical market trends and the previous market cycle are also seen as unchangeable barriers. Additionally, the supply of XRP continues to be a concern for many investors. The total supply of 100 billion XRP means the XRP market would need a significant capital injection to sustain the market valuation that comes with a $1,000 price.
In addition, Ripple’s control over a substantial portion of this supply raises questions about potential price manipulation, further fueling skepticism. Some community members have claimed Ripple suppresses XRP price with its periodic sales. However, David Schwartz, Ripple’s CTO, has dismissed these claims.
Sustained Confidence in XRP to $1,000
Despite these narratives, “Common Sense Crypto” remains optimistic. He argues that true believers see the potential for XRP to reach four digits and beyond, dismissing the skeptical viewpoints as mere FUD. He says the choice is whether to believe these narratives or the purported facts about XRP’s potential.
A community member added that skepticism stems from the numerous challenges that need to be addressed for such a high valuation to become realistic. He stressed the importance of not solely relying on market cap as an indicator, noting the speculative nature of the current market.
Currently, XRP trades at $0.49, marking a 1.62% drop over the past 24 hours. For XRP to reach the $1,000 mark from this level, it would need to surge by an astronomical 203,732%.
This would place XRP’s market capitalization at around $55 trillion, surpassing the value of all other assets in the world. Many argue that such a massive influx of capital into the market is highly unlikely.