Posted 12 months ago | by Ben Armstrong
XRP is in Short Supply - Demand May be Pushing Prices Higher
In recent years, many people have noted that XRP's price hasn't kept up with other major cryptos. Some people who gained the crypto after the 2017 bull market expected that XRP prices would jump, and create great profits.
While XRP hasn't been able to keep up with Bitcoin, it may be on the cusp of breaking higher. It is facing a falling supply picture, and the demand for the third most popular crypto (by market cap) just keeps going up.
Only 8.3 billion XRP remains in the open market. According to Kevin Cage. people could buy a limited amount of Ripple and drive the price higher. This may explain why XRP has been more resistant to shocks than many bears thought it would be.
XRP is Well Supported
It isn't difficult to see that XRP has steady support and that it has also been able to remain in the top five cryptos measured by market cap for a few years. This might seem odd, but it speaks to increased prices ahead for XRP.
Many people in the existing crypto community have a major preference for Bitcoin, but as more people enter the crypto sphere, it is very possible that cheaper tokens like Ripple will rise in value.
From the perspective of a consumer, the cheaper price, and the ability to buy a bunch of Ripple for $100 USD may be attractive. With modern crypto wallets token all spend the same, so as long as both parties like the token, it doesn't really matter which blockchain is powering it.
Would a Push Higher be Significant?
According to The Bearable Bull, XRP's price gradually keeps going upward due to more big buyers picking up the token on public exchanges.
It is easy to understand that if the demand for buying XRP rises more, the price definitely will follow. This may create a positive cycle that puts Ripple into an enviable position. Of course, the future price action of any market is uncertain, and XRP may just continue to tread water under the $0.50 USD mark for the next few years.
As it stands today, XRP is still well-bid and has managed to claw back most of the losses that it suffered earlier this year. Other tokens are also doing well in the post-crunch environment. The real risk now is that cryptos as a sector seem to be trading in-line with other 'risk' assets, and another big sell-off in the financial markets could drive token prices lower.