Our XRP price forecast for 2020 is the last addition to our annual global market forecasts. Although we mostly try to forecast a specific price target we will not do so in this XRP price forecast for 2020. We will determine directionally where XRP is going in 2020. For 2021 and beyond we remain firm to our first price target of 4 USD which are former all-time highs, followed by ultimately 20 USD. Impossible? Nothing is impossible. BTC went through a 100-fold increase in 2015-2017. Why would XRP as the most promising cryptocurrency in terms of adoption not be able to rise 20-fold, followed by another 5-fold rise? As said in our 7 Must-Read Cryptocurrency Predictions For 2020 we believe the grand (secular) crypto bull market will continue, and it will be a pre-requisite for XRP to thrive.
Let’s start with the most important premise of XRP: adoption. That’s what sets it apart from practically any other cryptocurrency out there. We’ll then move to the XRP chart.
XRP Bullish Price Forecast Based On Adoption
XRP in transactions starts becoming really significant. The demand for XRP is growing fast now.
Right before 2020 kicked in the world learned about Ripple’s $200M fund raising success. This fresh new capital will be used to accelerate the XRP adoption process.
In an interview with Fortune, CEO Brad Garlinghouse said Ripple currently has more than 300 customers. He expects Ripple’s customer base to grow 30-40% in 2020, and says transaction volume on the company’s network will increase more than 600%. The $200 million investment, which was also backed by SBI and Route 66 Ventures, may help Ripple refute skeptics who say its technology is a solution in search of a problem and question why banks should adopt it.
Moreover, from the same interview with Ripple’s CEO it appears that Ripple is really committed to growing the XRP ecosystem:
As for the new funding round, Garlinghouse cited a high level of investor interest in Ripple, saying the company did not need the money, though the funds will provide “balance sheet flexibility.” A Ripple spokesperson said its plans for next year include hiring up to 150 new employees and adding overseas offices.
One of the most important signs of adoption is the partnership between Ripple and Moneygram, one of the largest money transfer services worldwide. Even CNN featured this, and there is a direct link to the TV interview through this tweet.
XRP Price Forecast For 2020 Directionally Bullish
From a price perspective the breakdown of XRP was an important event of 2019.
We believe that XRP is setting a giant rounding pattern. A major rounding bottom or ‘saucer base’ in more technical terms. Eventually this will resolve to the upside, and we believe that XRP will set a major bottom in the first half of 2020 before starting its steady rise.
In our cryptocurrency investing premium service we explained in great detail how this formation tends to have a bullish outcome, provided it respects this formation of course. We saw an analogy with the 5 decade long silver price chart. The comparison is striking, not only because the setup is almost identical but also because of the 10x faster factor (the time silver spent to consolidate before bottoming is almost identical as 1/10th of the time XRP doing the same).
Why Our XRP Price Forecast Beyond 2020 Remains Bullish
Adoption is what we believe will be the game changer. Forecasting when exactly increased demand for XRP as a results of adoption will kick in is an impossible task.
That’s why XRP holds should be in this game for the long run.
But then how exactly do these adoption effects works, and why do we remain so bullish amid an XRP breakdown at the start of 2020?
Shout out to Chris Smith on Medium.com who published this picture which is exactly what we were looking for: network effects! Mind the difference between the ‘right path’ (black lines) vs. the pitfall (green lines).
The point about network effects is that they build up slowly, but accelerate very fast in a very short period of time.
The data points we see on how fast XRP is adopted for instance in the USD to Mexican Peso corridor is a proof of this, according to us.
What plays a critical role here is that Ripple probably is not short on capital. This sets Ripple apart from almost any other startup. Their growth path suggests they will not make the mistake of being on the green path on the chart above, most likely they will remain on the black line. Note: the black line is the right path to achieve network effects.
Network Effects As A Catalyst For Our XRP Price Forecast
The network effect is one major underlying force at work but we see 3 more fundamental catalysts underpinning our long term XRP price forecast beyond 2020.
- “Convergence“: Ripple announced plans recently that their different technology solutions will converge over time into one stack. They also said the XRP token will play a functional role in there. This news went under the radar because it came out when the crypto markets was declining. However, it is this 1% of relevant news as per InvestingHaven’s 1/99 rules.
- Institutional money will flow primarily into Ripple’s XRP token. If you were an institution with millions of dollars to invest which cryptocurrency would you choose with a ‘low risk high reward’ perspective? In the first place: Ripple is the ONLY crypto company with so many respected clients. Would you put money into Bitcoin cash (what added value does it deliver)? Or in EOS (with typical Chinese nontransparency)? Tether (what are they doing) or Litecoin (its founder selling all its holdings last year)? The serious money will flow into Ripple’s XRP first, is our forecast, then Bitcoin and Ethereum and Stellar Lumens.
Long Standing XRP Price Forecast Of 20 USD Still Valid
Our longstanding price target of 20 USD is still valid. XRP will not trade at 20 USD in 2020 obviously, that’s a bit too ambitious, but it will set the stage in 2020 for an accelerated rise later down the road.
The first step is for XRP to respect this giant rounding formation. As long as XRP continues to move in this pattern and as long as the long term crypto bull market (driven by BTC) will continue it will lead bring XRP sooner or later back to all time highs.
That will set the stage for a break to new highs which will bring the long standing 20 USD price target front stage. That will be the time when XRP will have such a massive adoption that huge demand for XRP will drive its price. That’s not for 2020 but we should see the signs of our forecast in 2020 though.
The Biggest Contrarian Call For 2020 And Beyond
XRP is THE most promising cryptocurrency in terms of ADOPTION. Ripple’s announcement raising $200M to accelerate XRP adoption in their XRP ecosystem is the ultimate proof of this.
Yet, the price of XRP got stuck in 2019, and fell even below support. It implies 2019 was not the year of prices following adoption, but prices following crypto investing emotions.
XRP will go lower until weak crypto investor hands have sold, after which smart crypto investors take over control. That’s why there are 2 outcomes in 2020 which we believe will follow each other sequentially:
- Crypto investors with a speculative mindset are in this game for another 100x rise of XRP, similar to what it did in 2017. However, they are sensitive to fear mongering messages, especially those bots on Twitter and crypto articles by Bitcoin maximalists. This created a fear effect, and many XRP holders got disappointed. That’s what happened right before the start of 2020. This effect may go on for a while, until all weak hands have sold and BTC gets bullish again.
- We anticipate large institutional investors to have critical mass first, after which increased demand for XRP’s adoption will kick in. This is a process that may take a while to complete, so there might be additional downside first. This process should start in 2020.
It is clear from this situation that XRP is now THE #1 contrarian play, not only in crypto’s investing world but in any market in 2020 globally.
We remain firm on our XRP #1 position, and it’s a matter of time, but our timeline for our longstanding price target is visibly delayed. It is what it is, but no reason whatsoever to change our mind nor our positions.
XRP Forecast Log: Weekly updated throughout 2020
This is a weekly log to keep track on our XRP price forecast for 2020. We update this log on weekly basis with short bullet points to highlight whether the XRP price in 2020 is developing according to our XRP price projection.
- First week of January: we see encouraging signs on the BTC chart as well as the XRP chart. The odds favor a reversal to take place which should help XRP tremendously.
- Second week of January: a great start of the week for the price of XRP. It is rising along with BTC. We couldn’t imagine it better than this, great start of the year 2020.
Stay tuned, and keep following our work to get updates on XRP and the crypto market. We strongly recommend to sign up to our premium crypto investing service (detailed actionable real-time insights).