Lewis Jackson, a popular crypto analyst, gave some insights on Ripple’s (XRP) price potential on his YouTube channel, addressing three widespread myths that often mislead investors. His analysis encourages a deeper understanding of XRP’s growth prospects.
Myth 1: Partnerships Will Favour XRP’s Price
The analyst challenged the notion that Ripple’s collaborations with major companies will lead to a significant surge in XRP’s price.
While these partnerships may create a favorable market atmosphere, Jackson emphasized it does not directly influence price movements. Retail investors might observe minor fluctuations, but substantial price changes necessitate factors beyond mere partnerships.
Myth 2: Large-Scale Token Use Will Boost XRP
The analyst argues against the belief that increased usage of XRP by banks for large transactions will elevate its price.
He explains that such usage does not generate enough scarcity to meaningfully impact the price. Instead, the ongoing circulation of tokens tends to stabilize prices rather than drive them upwards.
Myth 3: Regulatory Clarity Will Cause Price Explosion
He addresses the misconception that regulatory clarity alone will lead to a dramatic increase in XRP’s price.
Although having clear regulations may enhance institutional confidence and make XRP a more appealing option for long-term investment, the analyst asserts that this clarity does not guarantee an immediate price surge.
The Main Triggers Behind XRP Price Appreciation
Price Increase Mechanism:
True price appreciation for XRP relies on significant institutional holdings that do not enter circulation frequently. By reducing the circulating supply, the price can gradually rise over time.
Virtuous Cycle Effect:
As institutional adoption of XRP grows, token circulation diminishes, creating a cycle of increasing demand. This virtuous cycle may ultimately contribute to price increases in the long run.
XRP Price Prediction
The analyst advises investors to maintain realistic expectations regarding XRP’s price potential.
In typical bull markets, he suggests that a price range between $7 and $30 is plausible, while extreme predictions like $1,000 or $10,000 are highly unlikely without considerable institutional investment.
