Expectations around XRP's price growth to triple digits are generating interest within the crypto community. Some experts believe this is possible due to the liquidity features of the token and upcoming market events.
Importance of Liquidity and Its Impact on XRP Price
Analyst Zach Rector highlighted the significance of liquidity for XRP during a recent podcast. He noted that even minor inflows could lead to significant increases in market capitalization. Analyzing data from Coinglass, Rector found that during recent XRP price surges, small investments in the tens of millions of dollars resulted in market cap increases in the tens of billions. This creates a rationale for considering a price rise to $100, even with relatively modest inflows of $100-$300 billion.
The 'Perfect Storm' Scenario for XRP
Another analyst, Paul Barron, discusses how XRP might benefit from a 'perfect storm.' He emphasizes that simultaneous events such as inflows from ETFs, changes in US market structure, and Ripple obtaining a banking license could create conditions for a sharp rise in XRP price. He believes even if the price settles around $30-$40 after a spike, that would be significantly higher than current values.
Long-Term Perspectives and Warnings for Investors
Zach Rector also shared his personal outlook on XRP, indicating that over 90% of his portfolio consists of XRP tokens. He views them as a long-term asset but warns investors about potential risks. In a joking manner, he stated: 'When XRP hits $50, don’t rush to tell your wife that your net worth is now $10 or $20 million. In the short term, that figure could be cut in half.'
While the scenario of XRP reaching triple digits is debatable, analysts see potential contributing factors. Nevertheless, risks and volatility remain significant.
