- A financial strategist and crypto investor believes the market has already cast the conditions to prepare the rise of XRP price to $100 or $1,000.
The price of XRP continues to struggle within the $3 mark. It’s also falling behind in momentum compared to other top market cap cryptocurrencies as it has yet to surpass the $3.84 all-time high (ATH) it reached eight years ago. For context, Bitcoin’s (BTC) last historic peak came a month ago, Ethereum (ETH) recorded its highest 24 days ago, BNB scored its ATH today, Solana (SOL) is fresh from its peak eight months ago, and so on.
Despite XRP’s apparent underperformance even after shaking off its case with the US Securities and Exchange Commission (SEC), Versan Aljarrah, a financial strategist and crypto investor who founded Black Swan Capitalist, believes the conditions have been set for its eventual rise to $100, and even $1,000 per token.
XRP Price to $100
According to Aljarrah, the market has undervalued XRP. This is due to retail investors getting too distracted and shaken off by the noise from short-term narratives. In comparison, banks, financial institutions, and high-value investors have been building up their positions in the digital asset for years.
Open interest in XRP has significantly rebounded from a slump at the start of September to the present $3.1 billion based on Coinalyze data. It indicates a renewed and strengthening sentiment in the digital asset.
Open interest measures the total number of outstanding derivative contracts, such as futures or options, that traders have yet to settle. An increase in this metric suggests that new money is flowing into the market, and traders are taking new positions.
The strategist claimed the institutional trend is gradually reducing the supply of XRP, even with the ongoing escrow unlocks of Ripple. He thinks it will ultimately lead to the token’s “first real supply shock.” The growing transactional demand for the asset as it gains traction in adoption and cross-border settlements can aggravate the event.
Aljarrah highlighted that the tightening supply and increasing usage will squeeze the price of XRP to $100.
Transition From $100 to $1,000 Per Token
Interestingly, Aljarrah’s bullish forecast for XRP doesn’t end at its price soaring to $100. He pointed out that the widespread integration of the asset into the global financial system could propel it to $1,000.
With Ripple supercharging XRP and the XRP Ledger’s (XRPL) integration to the global financial system, potentially challenging SWIFT’s dominance, it could pave the way to the token’s departure from its status as a mere retail speculative asset to a more mature role as a functional utility.
If financial institutions were to embrace XRP in large-scale payments and liquidity management, Aljarrah said the velocity of transactions and the total value flowing through the network would grow exponentially. Once the asset begins representing a larger portion of global financial activity, such as capturing 14% of transactions away from SWIFT, its valuation has the potential to jump to a thousand dollar per token.
Overall, Aljarrah grounded his bold forecast on the aspect of growing demand for liquidity in XRPL-powered payment rails rather than concentrating on the constraints of the asset’s market cap in laying down his targets.
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