The New Year is here and the excitement of crypto market participants knows no bounds!
The yet-to-be-approved spot Bitcoin [BTC] exchange-traded fund (ETF) applications were the major catalysts around which the industry’s expectations seemed to have coalesced.
The market saw a glimpse of what was about to come in the last quarter of 2023. Major cryptos zoomed off to their pre-bear market levels.
The total market value surged 65% to $1.65 trillion during this time, leading many experts to dub this phase as the “early bull market.”
Source: CoinMarketCap
In fact, British multinational bank Standard Chartered predicted that Bitcoin would sail all the way up to $100,000 by the end of 2024. Even conservative estimates have predicted an ascent up to $60,000 at least.
Naturally, such bullish views have grabbed the attention of the public, with many giving serious thoughts about growing their crypto portfolios. Moreover, even traditional investors were actively looking to enter the crypto market.
Where does XRP stand amidst this frenzy?
XRP, the native token of the Ripple network, was perhaps one of the biggest success stories of 2023.
The asset, which has been in a state of great confusion about its future since December 2020, heaved a sigh of relief after Ripple Labs secured a legal victory against the U.S. Securities and Exchange Commission (SEC).
The end of the long-drawn and hotly contested battle removed doubts about the “security” label of XRP. For context, the ruling mentioned that XRP is a security when it’s sold to institutional investors, but not to the public.
The landmark development spurred optimism about greater XRP demand in the future.
As of this writing, XRP was exchanging hands at $0.61, a jump of nearly 30% since the verdict was passed on July 2o23, AMBCrypto noticed using CoinMarketCap data.
Hence, there remains little doubt as of this writing that XRP could become one of the most coveted assets in a crypto portfolio. With a well-planned strategy and timely investments, there was enough money to be made with XRP.
But the question is — how much XRP is needed to secure a million-dollar fortune?
Mind these figures
Let us start with a very basic approach. As discussed earlier, XRP was valued at $0.61 at press time. To be a millionaire now, one needs to have — $1 million divided by the price of one coin, i.e., $0.61 — which is equivalent to 1.63 million XRP coins.
Nevertheless, it ain’t that simple!
As highlighted earlier, XRP was primed to sail further up in 2024, given that ambiguities have been removed. Logically, then, XRP would not be stuck with $0.61 or thereabouts and move much higher.
This meant that new investors or young investors would probably need a lesser number of coins to hit the $1 million jackpot in 2024. Let us delve into this speculative approach.
XRP touched its all-time high (ATH) of $3.40 during the 2017-18 bull market. If the value were to reach this level in 2024, the estimated number of coins required would be — $1 million divided by $3.40, which boils down to 290,000.
However, this was the best-case scenario, not the most likely one.
Source: CoinMarketCap
The more practical scenarios
As per AMBCrypto’s in-house analysis, XRP’s price during January 2024 would average $0.50, signaling a potential correction. The monthly average price was forecasted to steadily increase to $0.85 by December 2024.
Going by these predictions, the XRP’s average price for 2024 was expected to be around $0.77. As a result, a trader should have — $1 million divided by $0.77 i.e., 1.29 million XRPs in their stashes to reach the magic figure of $1 million.
While this was a very conservative estimate, remember that analyses and postulations vary depending on the model. Ultimately, the accuracy of price predictions is impossible to determine with any degree of certainty.
While talking to AMBCrypto, David Kemmerer, CEO of crypto tax reporting software CoinLedger, forecasted XRP to be in the $1.00-$1.20 range in 2024.
If we were to consider this, possession of about 1 million — 830,000 XRPs would help you to become a millionaire.
Similarly, in an analysis shared with AMBCrypto, crypto exchange Bitrue eyed a range of $1.5 — $2 for the payment-focused cryptocurrency in 2024.
If such levels are eventually hit, an investor would require 500,000 to 670,000 XRPs to reach millionaire status.
All these numbers appeared enticing for any investor, especially if you are a newbie without much experience in the crypto industry. And therein lies the great challenge of not getting carried away.
Bitrue concluded the analytical report by stating,
“Achieving millionaire status through XRP in 2024 demands a comprehensive understanding of the market, a willingness to take calculated risks, a diversified investment approach, and a keen eye on ongoing market dynamics.”
David Kemmerer had a similar word of caution.
“There is a ton of potential with investing in XRPs, but it’s still considered to be on the riskier side of things, so investors should be careful with how much they choose to invest.”
XRP’s fate hinges on these events
Investors should also weigh in on other factors that could significantly influence XRP’s market valuation in 2024. The buzz around Ripple’s Initial Public Offering (IPO) perhaps stands right up there in the mix.
Recently, Wall Street investment expert Linda Jones predicted Ripple would go public as early as May 2024. The prospect of the company’s shares getting listed on a stock exchange could substantially boost XRP’s worth.
Moreover, while Ripple may have secured a big win, legal tangles have not exactly ended for the firm. A jury trial, deciding about the fate of its top executives, including CEO Brad Garlinghouse, has been scheduled for Q2 2024.
The verdict could be a major catalyst for XRP’s price.
XRP remains bullish
To get a semblance of XRP’s momentum, AMBCrypto turned to TradingView. Notably, the Relative Strength Index (RSI) was hovering above 50 as of this writing.
Is your portfolio green? Check out the XRP Profit Calculator
Note that in an uptrend, the RSI tends to remain in the 40 to 90 range, with the 40-50 zone acting as support.
Additionally, the On Balance Volume (OBV) indicator has exhibited higher highs and higher lows patterns in the last few weeks. This served as important evidence of fresh money entering the market.
Source: Trading View
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.