Ripple Labs is one of the best-known tech corporations in the United States, with its focus being on the blockchain industry, online networks, and its own XRP Ledger. The company was originally known as Opencoin but has since changed its name following a rebrand. The Ledger, also known as the Ripple Protocol, is a cryptocurrency platform that utilizes the XRP coin as its native cryptocurrency token. It supports other cryptocurrency assets as well, as well as various units of value, such as frequent flyer miles and mobile minutes.

Although crypto coins are known for their volatility and frequent fluctuations, with investors repeatedly checking the XRP price before commencing a venture, that hasn’t stopped traders from adding them to their portfolios to support diversification and ensure their assets are safeguarded in the event of currency depreciation or a sudden spike in inflation. In fact, many have also started investing in additional products to guarantee the integrity of their portfolios. In March, President Donald Trump announced that XRP would be one of the five digital holdings that would be added to the United States’ crypto strategic reserve.

This has naturally boosted interest in the coin, resulting in increased engagement within the ecosystem and a subsequent price rally. The fact that the entire cryptocurrency market has been performing well this year has provided the marketplace with an additional boost, and researchers currently believe that XRP is on the brink of reaching new all-time highs.

An overview

All cryptocurrencies function in more or less the same way since they all follow the same blueprint: Bitcoin, the first crypto token to appear on the market. However, they must also bring something new; otherwise, they have no chance of surviving in the highly competitive crypto environment, let alone succeeding and gaining notoriety. So, what makes XRP different from its peers? The Ledger operates on a consensus protocol that is neither proof-of-stake nor proof-of-work.

As a result, all transactions are completed through a network of validators that operate individually and can reach consensus every three to five seconds. This means that transaction settlements are incredibly fast, an undeniable advantage, as investors generally prefer swift transactions. The community of validators is known as the Unique Node List, and apart from its rapidity, it is also highly reliable and secure.

Nonetheless, some researchers have been wondering about the possibility of centralization within the ecosystem as a result of this method. After all, the blockchain is known as a decentralized network, with this characteristic being one of the primary reasons why cryptocurrencies were created and gained popularity in the first place. Many investors were seeking an alternative to the standard system, so the fact that the blockchain could become more centralized would likely not be welcomed with open arms by this cohort.

The peer-to-peer overlay network features a small-world network topology, characterized by a tightly clustered structure and short paths between nodes. Experts, such as distinguished professor of Information Systems Mary Lacity, have noted that the XRP blockchain uses far less electricity than BTC, whose consumption has been a topic of discussion among environmental activists in the past. While Bitcoin’s energy use is equal to that of some countries, XRP utilizes about as much as it takes to run an email server.

A breakthrough

The XRP price surpassed the $3 psychological level in July, one of the most significant barriers for bullish investors. Before this level was reached, investors were discussing the necessity of breaking through this resistance level to clear the path for new all-time highs. The futures open interest indicates that XRP has even more upside potential than initially thought, suggesting that investors can expect consistent growth in the near future.

The price flip into the $3 area has provided the network with support and helped XRP avoid a deeper, much more considerable correction that would have taken it further away from a rally. In the past, rejection from $3 preceded a decline in XRP’s price, and analysts believe the same would have happened this time. Luckily, the danger was averted, and the value can continue to grow now. The last time the $3 level wasn’t solidified was in March, and a drop of almost 50% followed soon after.

The fact that it was not only supported in July but also surpassed made the XRP trading community very optimistic about the asset’s future, as well as their potential gains. The reason why this level is so crucial is that it aligns with the macro 0.118 Fibonacci retracement and the ability to reclaim another huge signal that the bullish run is doing well and is, in fact, picking up speed.

The $20 all-time high

The chart technical, analysis, and indicators indicate that the price has the potential to have the strongest rally in its history over the next few months. The multiyear highs of $3.66 have already been reached, but there’s no denying the fact that there’s much more room for evolution in the future. This future explosive move will most likely target the area between $7 and $20, which might seem far-fetched but is actually not so unlikely when you put things into perspective.

Currently, XRP is 90% higher than its April lows, an impressive performance run that shows crypto’s path can change all of a sudden. Even though the growth is significant, some analysts have pointed out that XRP hasn’t gone full bull yet, meaning that the rally will become more intense in the future. Many are confident that the $20 target will be reached by the end of the current cycle, so if you’re an investor, make sure to adjust your strategy accordingly in order to make the most of the market movements.

According to Binance.com CTO Rohit Wad, “Crypto. It's just going to happen. It's just a matter of time. Each revolution has come faster than the one before.” If you haven’t yet joined the crypto market but have been thinking of doing so, it’s not too late to get started. Just ensure that your financial goals are clear, so you can develop a customized game plan tailored to your specific needs.