A widely followed market commentator and YouTuber who goes by the handle “ModernInvest” expressed that it would be strange if XRP failed to break below $20 during this bullish season.
XRP price is rapidly recovering from the heavy selling pressure that pushed its value to the $0.50 level earlier this week. At the time of writing, it was trading at $0.5322, up 1.45% in the past 24 hours.
This number represents a marked improvement from the low of $0.5101 that XRP tested on Thursday, when the SEC announced its intention to appeal. However, XRP’s weekly performance still suffers from a 9.5% loss.
Although the SEC’s actions have temporarily stalled XRP’s ongoing bull run, market watchers like ModernInvest remain confident in XRP’s trajectory this cycle.
In a recent video, the analyst claimed that it would indeed be “strange” if the XRP bull market did not rise to at least $20. He emphasized that it is strange that XRP has not reached such a high level considering the momentum of the XRP ecosystem.
Hypothesis on why XRP should reach $20 this season
First, he noted that every transaction on the XRP network consumes XRP. He emphasized that the amount of XRP tokens being burned will only increase, especially if the XRP network starts processing billions of dollars worth of transactions every month, especially with the anticipated launch of the Ripple RLUSD stablecoin. did.
Ripple’s RLUSD stablecoin is expected to be launched in the last quarter of 2024. Initially, it will only be available on the XRP Ledger and Ethereum. Industry experts have outlined several ways RLUSD could benefit XRP, including increasing liquidity.
As of today, approximately 12.88 million XRP tokens have been burned out of a maximum supply of 100 billion tokens. This burn number continues to increase with each transaction on the XRP network.
XRP is characterized by operating under a deflationary model, given that no new tokens are introduced into circulation while existing tokens are burned.
Market observers like ModernInvest believe this deflationary model is a bullish factor for XRP. The burn rate is expected to increase as transactions on the network become larger, limiting the available supply of XRP and increasing its price.
Another factor that ModernInvest cited as supporting his bullish outlook on XRP is the recently launched Grayscale XRP Trust. The trust’s net asset value soared more than 11% a week after its launch, indicating growing interest from institutional investors. The Trust currently has assets under management (AUM) of $1,985,776.
Additionally, an XRP ETF is also currently in development as Bitwise has filed an application with the SEC. This is expected to further increase the demand for XRP, supporting the theory that the price will rise.
ModernInvest also noted that beyond the interest of institutional investors, retail investors and crypto whales have been significantly accumulating XRP.
XRP needs 3,657% growth
Based on these factors, Modern Invest expressed a strong belief that it would be “strange” not to rise to $20 by next year. Specifically, for XRP to reach $20, it would need to rise 3,657% from its current price level.
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