Ripple (XRP) is $1.50, should I buy now?

▲ Ripple (XRP) ©

XRP (Ripple), which was once threatened to fall below $1 in the summer, has rebounded to $1.50. However, expectations for increased institutional adoption are clashing with regulatory uncertainty and competition from stablecoins, leading to mixed evaluations regarding its potential for further price increases.

According to the investment media The Motley Fool on September 24 (local time), XRP is trading at $1.50, having rebounded approximately 50% from its summer low of around $1. It is still about 60% lower compared to its peak last summer. The media reported that Ripple continues to expand its comprehensive blockchain payment infrastructure utilizing XRP, and Ripple CEO Brad Garlinghouse has actively supported the passage of the U.S. crypto market structure bill, the Clarity Act.

The core bullish argument for XRP is the increased institutional adoption of blockchain-based payment solutions. Dozens of financial institutions are already using the Ripple payment network, and an increase in participating institutions could positively impact XRP demand. The XRP spot ETF, launched late last year, was also cited as a factor that could support the price. The media suggested the existence of the spot ETF as one of the reasons why XRP quickly recovered after briefly dipping below $1 during the summer.

On the other hand, there is also a view that the upside potential may be limited. XRP's all-time high was recorded more than eight years ago at $3.84, and it has never surpassed that level since. The media suggested that, based on past price movements, XRP's practical upside limit could be around $4. Considering the current price of $1.50, the expected return might not be sufficient compared to the risk investors have to bear. Furthermore, the failure of the Clarity Act to pass in the U.S. Senate means continued regulatory uncertainty, which was cited as a risk factor that could slow down the adoption of blockchain payment networks by institutions.

Competition with stablecoins is also a variable. Ripple itself emphasizes payment solutions utilizing its own stablecoin, Ripple USD (RLUSD). While stablecoins are designed to be pegged to $1, XRP's high price volatility could make it relatively disadvantageous as a payment method, according to the media's analysis. Ripple's corporate value is currently estimated at $50 billion, attracting attention from Wall Street and the White House, but it is pointed out that the company's own growth prospects and the potential for XRP price increases need to be viewed separately.

The media expressed an optimistic view on Ripple's long-term growth prospects but presented a relatively cautious outlook for XRP. Even if all conditions proceed as planned, XRP might only double to around $3 within the next 12 months, and considering past price movements, it is uncertain whether it can surpass $4.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*