Rewind to early November and Ripple’s (XRP) price was treading water around the $0.50 mark after more than two years of lackluster movement. But that all changed on November 5, when Donald Trump clinched the U.S. presidential election and sent shockwaves through the crypto market.
Investors quickly latched onto the idea that a Trump administration could usher in a more crypto-friendly era, particularly promising for XRP, which had been battling the SEC over allegations it was sold as an unregistered security. Over the next two months, XRP skyrocketed, ultimately hitting $3.29 by mid-January, delivering gains of more than 550%.
XRP has since pulled back by 32%, but the question is whether the coin has more downside in it or could it be ready to climb to new yearly highs?
With this question in mind, top investor Anders Bylund, who’s ranked in the top 1% of stock pros on TipRanks, has been mulling over both the bull and bear case for XRP.
On the bear side, the picture isn’t exactly rosy. The rally was likely a one-off event tied to the election, and the resolution of its legal battle with the SEC (which as hoped for, dropped the case against Ripple) is already priced in. Hopes that a government-backed crypto reserve might significantly boost demand have also fallen flat – there’s little indication it will buy much Bitcoin (BTC), let alone XRP, making this once-promising catalyst irrelevant. Meanwhile, Ethereum and Solana continue to build momentum in the cross-border payments space, challenging XRP’s relevance.
“With so many question marks and weaknesses in play, XRP surely looks poised for a painful price correction,” says the 5-star investor. “Right?”
Not necessarily, Bylund goes on to add. While he concedes the bearish arguments are credible, the bulls can also add plenty to this debate, too. Unlike meme coins such as Shiba Inu or Dogecoin that have no real utility, XRP powers a real international payments system through RippleNet, which is already influential and “could become a trillion-dollar business someday.” And while the SEC case is over, its broader impact could still benefit the crypto space over the long-term, with XRP positioned to be a prime beneficiary as crypto’s adoption by the mainstream financial world grows. As for competition from other platforms, they could drive further innovation, while RippleNet’s existing partnerships with banks already give it an edge.
“From this perspective, XRP could be in the early stages of a massive market opportunity,” Byland further added.
So, down to business, does Byland think investors should be loading up while Ripple still sits below $2.50? “That depends on your risk tolerance, your views on the future of international payments, and your confidence in Ripple’s ability to hold off its rising rivals,” he says. “I’m convinced that XRP has a bright future, but it’s hard to tell how much of that incoming boom is reflected in the current price.”
As with any investment, especially in the highly volatile world of cryptocurrencies, Byland reminds investors that it’s essential to understand the risks involved before diving in.
“There’s nothing wrong with waiting for more clarity if you’re not sure which way this story ends,” he summed up. (To watch Byland’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.