Shannon Thorp, a renowned Wells Fargo Analyst, recently shared a bold forecast for XRP, the native digital asset of the Ripple network, on Twitter.

Drawing on her meticulous calculations and considering various factors, Thorp presented a conservative short-term price prediction for XRP, suggesting that its value could range between $100 and $500 in the near short term (the next four to seven months).

To arrive at this prediction, Thorp considered several key variables that could influence XRP’s future, including an analysis of the cryptocurrency’s circulation and adoption by banks, liquidity providers, and governments. By evaluating these aspects, she projected the potential liquidity strength (LS) of XRP, suggesting it could reach trillions of dollars if widely utilized across various financial institutions.

The pundit also took into account the recent ruling in the SEC vs. Ripple lawsuit, the recent FedNow announcement, and the proposed crypto regulation bill currently under Senate consideration, which according to her, are a step in the right direction for XRP and other cryptocurrencies. Additionally, she emphasized the importance of XRP’s application in messaging and settling as crucial in determining its trajectory.

Thorp’s prediction wasn’t solely based on charts and technical analysis; she underscored the significance of considering XRP’s potential utility and widespread adoption. According to Thorp, XRP’s rapid settlement times and low transaction fees make it a promising candidate for cross-border transactions and various other financial applications.

Addressing Divisions within the XRP Community

Meanwhile, despite the bold price prediction, Thorp expressed concerns about the XRP community’s differing approaches to predicting its future.

“In my opinion, now more than ever I see a divided XRPArmy! One side looking at only charts, taking cues from the past and trends that follow Bitcoin to draw short term price predictions. Whilst others cling to utility, believing that partnerships and the replacement of antiquated systems will drive price,” she wrote. 

“XRP, for those not in the know is NOT a security! Why would we continue to pretend it is and make price predictions based on “Securities” in the crypto space? This logic seems counter intuitive and holds back what the team Ripple set off to do so many years ago.”

Thorp then challenged both approaches, asserting that neither has proven fully accurate and encouraged a broader perspective to unlock the true potential of XRP.

That said, Thorp’s positive forecast for XRP’s future underscores the rising significance of XRP in the global financial landscape. The increasing demand for XRP from banks using it for wire transfers, coupled with the limited supply of around 50 billion out of 100 billion, is expected to drive a substantial price increase. Moreover, developments like Ripple’s recent creation of a mortgage branch on the XRP ledger add further impetus to the cryptocurrency’s upward trajectory.

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Filed under: Bitcoin - @ August 5, 2023 6:46 pm