Ripple (XRP) analysis: What is the outlook for 2022?
The ripple (XRP) price rallied above $1 in late November and again towards the end of December, but has since fallen back as the cryptocurrency markets remain bearish.
The cryptocurrency’s developer, Ripple Labs, remains under investigation by the US Securities and Exchange Commission (SEC), which continues to limit the short-term upside potential for the price.
Should crypto investors consider buying the dip, or is XRP a sell at current levels? Let’s take a look at the latest developments.
Ripple continues to fight the SEC lawsuit
In the latest rulings in the SEC case on 13 January, Judge Sarah Netburn approved a joint motion for an extension of expert discovery to 28 February and partially granted a motion from Ripple Labs that would compel the SEC “to produce certain documents that the SEC has asserted are protected by the deliberative process privilege”.
Ripple Labs believes the documents would “challenge the SEC’s allegations that [co-founder and chairman] Larsen and [current CEO] Garlinghouse were objectively reckless in believing that XRP was not a security and that Ripple was on ‘fair notice’ that XRP was a security”.
The lawsuit has affected trading in the XRP cryptocurrency for more than a year. Several US exchanges removed XRP from their listings when the lawsuit was filed in December 2020, limiting trading activity and weighing on the price.
Jake Chervinsky, a Washington, DC-based lawyer who is also executive vice president and head of policy at the Blockchain Association, tweeted on 16 January that Ripple Labs is “giving the SEC more trouble than anyone in crypto, maybe more than anyone period, including Elon” (a reference to Tesla chief executive Elon Musk) and “they're the leading dispute on securities law, if only because they'll fight to the death, unlike those who caved and settled”.
No matter your view on @Ripple, two things seem clear:
— Jake Chervinsky (@jchervinsky) January 16, 2022
- They're giving the SEC more trouble than anyone in crypto, maybe more than anyone period, incl. Elon
- They're the leading dispute on securities law, if only b/c they'll fight to the death unlike those who caved & settled
On 17 January, the Binance cryptocurrency exchange announced that it has completed the integration of a wrapped XRP token (wXRP), enabling it to be deposited on Ethereum and other blockchains.
John Deaton, managing partner of the Deaton Law Firm and founder and host of Crypto Law, is leading a class-action lawsuit of XRP holders against the SEC. Speaking of the launch of wXRP, Deaton said: “Very significant news for XRPHolders regarding our amicus argument. It demonstrates another reason to own #XRP independent of Ripple’s efforts. Today’s #XRP isn’t 2013’s Token.”
With the case ongoing, Ripple Labs continues to announce partnerships and developments for the XRP Ledger (XRPL), the blockchain on which the XRP token runs.
At the 2021 Apex XRPL Developer Summit in September, it announced plans for federated side chains that would enable developers to build customised blockchains using XRPL technology for decentralised finance (DeFI), non-fungible tokens (NFTs), central bank digital currencies (CBDCs) and other applications.
Ripple Labs also announced partnerships with several countries last year with its plan of developing CBDCs, including the Republic of Palau and Bhutan, and launched remittance services in the Middle East, Thailand and Japan.
Ripple price chart analysis shows that XRP tends to track the movements on the broader cryptocurrency markets. The price climbed to $1.96 on 14 April 2021 when the markets rallied – its highest level since the previous crypto market rally in January 2018 when it hit its all-time high of $3.84.
The XRP value then fell during the May market sell-off and bottomed out at $0.5179 on 20 July.
The price chart shows that XRP followed the summer market rally to reach $1.41 on 6 September, then dropped to $0.8383. The price moved back above $1 during the November market rally to reach $1.28, but the ripple trend has been downward since. XRP was unable to hold onto the $1 level after briefly touching $1.02 on 23 December.
The coin ended 2021 at $0.8312 and has continued to decline in January 2022, falling to $0.7194 on 20 January.
Will ripple go up or down in 2022? Let’s look at the latest forecasts.
Ripple (XRP) analysis: Can the coin gain value in 2022 or is it a sell?
XRP technical analysis from CoinCodex showed sentiment was bearish at the time of writing on 21 January, with 25 bearish signals compared with six bullish signals. The daily simple and exponential moving averages were predominantly bearish, along with the Hull moving average and the volume-weighted moving average, with the rest neutral. The average directional index, stochastic fast, Williams Percent Range, 100- and 200-week simple moving averages (SMAs), and the 200-week exponential moving averages (EMA) showed buy signals.
With XRP trading at $0.67 at the time of writing, it had fallen through technical support at the $0.707519 level, with the next level at $0.666599 and resistance up from $0.748439 to $0.789360, the data showed.
CoinCodex predicted the value of XRP could rise by 3.44% to $ 0.702881 by 26 January.
The ripple short-term forecast from algorithm-based site WalletInvestor was also bearish, predicting the XRP price could slide to $0.615 by the start of February. However, it expected the price to turn higher in February and end the month at $0.761, and end the year trading at $1.319. By the end of 2025, XRP could reach $2.920, and by the end of January 2027 it could reach $3.453, approaching its previous all-time-high price of $3.84.
DigitalCoin forecasts that XRP could average $0.92875352373 this year, reaching $1 in September and December, based on historical data. Over the long term, the site predicted the price could average $1.43 in 2025 and $2.9 in 2029, trading up to $3.10 in that period.
PricePrediction was bullish in its long-term outlook, expecting the XRP coin to average $1.11 in 2022 and $3.42 in 2025, climbing to an average of $21.12 in 2030.
When looking at analysts’ forecasts, you should bear in mind that the high volatility in cryptocurrency markets makes it difficult to predict long-term prices accurately. Analysts and algorithm-based forecasters can and do get their predictions wrong.
We recommend that you always do your own research, and consider the latest market trends, ripple news, expert opinion, and technical and fundamental analysis before making any investment decision. And never ever invest more than you can afford to lose.
FAQs
What affects the ripple price?
The ripple price has been under pressure since the SEC filed a lawsuit in December 2020 claiming the coin has been trading as an unauthorised security. The direction of the price tends to follow the wider cryptocurrency markets.
How high can the ripple price go?
The XRP coin price could return to its all-time high above $3 by the end of the decade, according to some forecast sites, with the most bullish – PricePrediction – expecting it to rise above $20 by 2030.
Bear in mind that cryptocurrency prices are highly volatile and difficult to predict. Forecasters can and do get their predictions wrong. You should do your own research to make informed trading decisions, and remember that past performance is no guarantee of future returns.
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