“I was wrong about XRP,” admits market analyst

The XRP market, the cryptocurrency issued by the Ripple company, is having a performance that reinforces bullish expectations. Even Practical Crypto Capital, investment company of analyst Chuck Gafvert, has retracted the bearish outlook it had given for this currency.

“I was wrong about XRP,” says Practical Crypto Capital in new report. And in the report he has predicted a good future for the cryptocurrency this year.

Three years ago, the company had billed However, he also warned then that there was no reason to hold the cryptocurrency long-term.

According to the investment company, there were exaggerated ideas about the future use of XRP for the central banks that did not support its long-term rise. “This reasoning turned out to be absolutely valid, at least for a time,” the new report details.

If someone had bought XRP at $0.40 at the time and sold during the peak (above $0.80) following Ripple’s legal victory in 2023, they could have doubled their money. The price then remained range-bound for more than a year, but the situation changed recently, breaking its bearish thesis.

XRP price went parabolic– Rising 5x from the $0.50 territory in November and hitting a multi-year high of $3.40. This performance can be seen in the following graph.

“I was wrong about XRP because this recent action was driven by retail investors who were likely attracted to the massive year-end bitcoin rally and subsequently captured by the narratives propagated by the , Practical Crypto Capital delves.

Charles Hoskinson, founder of Cardano, has recently acknowledged the power of the XRPArmy, highlighting its strong genuine community. “This praise is notable,” says Practical Crypto Capital, given the historical competition between cryptoasset projects.

Based in the United States, Ripple is a technology company that develops banking payment protocols to compete against SWIFT and also issues XRP. Although this cryptocurrency is used to transfer money just like other crypto assets, the XRPArmy is convinced of the success of the project and that it is the currency of the future.

For Practical Crypto Capital, it doesn’t matter that Ripple’s market share is going nowhere and that there is no evidence that XRP is a global reserve currency, as its enthusiasts crave. Because? “Because few fading retail investors will ever take the time to independently investigate the likelihood of these grandiose claims,” he explains.

“When you are presented with slick marketing from Ripple and a super strong community totally convinced that XRP will go to the moon, that becomes your reality,” the company highlights. “These narratives are powerful and I didn’t take that into account,” he adds.

It also clarifies that New narratives have emerged underscoring a bullish case for XRP: Just like they have bitcoin (BTC) and ether (ETH), there may be an XRP spot exchange-traded fund (ETF) in the United States.

Companies Bitwise, Canary Capital, 21Shares and WisdomTree have filed applications with the SEC seeking approval to create XRP spot ETFs.

“Ripple’s legal victories against the SEC now provide regulatory clarity that could increase investor confidence and lead to greater adoption through an ETF by financial institutions,” comments Practical Crypto Capital.

In addition, Gary Gensler, the director of the SEC who for years has rejected crypto asset ETFs, will leave his position this January 20, when Donald Trump takes office as president of the United States. His resignation comes after the Republican said he will fire him for hindering the growth of the cryptocurrency industry.

Trump plans to transform the United States into the capital of the cryptocurrency industrywhich bodes well for the market, as reported by CriptoNoticias. This has driven the rise in the sector since November when the Republican won the presidential election.

XRP Market Gets Motivated by RLUSD and ETF Expectations

Since bitcoin spot ETFs were launched a year ago in January 2024, the price of BTC has risen more than 120%. While this has not been the case for ETH, which appreciated by 35%, There are analysts predicting XRP could benefit from such an instrument.

JP Morgan bank estimated this week that XRP spot ETFs could attract flows of up to $8 billion.

Nate Geraci, a well-known ETF market expert, noted that an XRP spot ETF could be approved within a year. “This would be a big boost for Ripple and would also give a lot of credibility to the XRP token as a key digital currency in the market,” says Practical Crypto Capital.

In addition to this, it distinguishes that Ripple launched its own stablecoin in December, which is called RLUSD. “It is expected to become an important part of the company’s money and payments businesses,” he says.

To put it in perspective, in 2024, Tether, the issuer of the largest stablecoin, USDT, reported a record net profit of $5.2 billion in the first half of the year. “Its business model is simple: users buy USDT, Tether invests it in 3-month US Treasury bonds that pay more than 4% and pockets the profit,” explains the analyst company.

Tether has also endeared itself to the US government, he maintains, as it ranks third worldwide in purchases of 3-month US Treasuries.

“Ripple wisely launched its stablecoin to capture a piece of this revenue stream, expand use cases for XRP, and potentially attract more institutional money into the ecosystem,” the company underlines.

“XRP rise could be huge,” says

With the recent rise of XRP, which broke a 4-year triangle pattern as the chart exhibits, “who knows where this could go from here,” says Practical Crypto Capital. “If the market remains bullish in 2025, the increase could be enormous,” he exclaims.

Various analysts estimate that the maximum price of bitcoin this year will rise to between USD 120,000 and USD 150,000, which represents a potential increase of 50%. “With all the momentum XRP is generating, I think it could easily double its price and possibly even more,” the analytics company warns.

The explanation behind it is that, In the face of bullish trends in bitcoin, cryptocurrencies tend to experience stronger movements due to the expansion of enthusiasm and its lower market capitalization.

This bullish look does not rule out, however, his opinion on the project behind the cryptocurrency. “I still don’t like the Ripple company. “I still don’t believe the stories that XRP will be the world currency or will supplant SWIFT for money transfers,” he clarifies.

But, he highlights that there is strength in the charts, positive upcoming events, and an overly enthusiastic community behind XRP. According to his vision, “to make money, that must be respected.”

The key to making a profit is knowing when to sell and this is what he considers most important when it comes to maintaining the Ripple cryptocurrency. After a final price spike, XRP has a history of deflating quickly, he claims.

Therefore, he recommends not investing more than you are willing to lose and taking profits before getting too greedy. Likewise, he emphasizes the importance of everyone doing their own research before operating.

“I believe the entire cryptocurrency market is headed for a spectacular peak in 2025. The smart investor must recognize this and act quickly to maximize profits.”

Practical Crypto Capital, investment firm.

With this in mind, he maintains that XRP could be a good choice for venture investors looking for profits this year.