Crypto enthusiasts are not wasting any chances to follow in the success of r/WallStreetBets. Over the weekend, XRP (CCC:XRP) erased all of its losses from the last month, soaring on the back of a coordinated rally. So where do XRP price predictions say the crypto goes next?
To start, investors should know that it has been a busy few days for the digital currency. Ripple, the company behind the crypto, took a stand on Friday. In a new filing, it responded to the U.S. Securities and Exchange Commission lawsuit it faces.
For those unfamiliar, the SEC alleged in December that XRP was a security and not a digital currency. However, Ripple had not registered XRP as such, angering the regulatory agency. Unsurprisingly, allegations took a huge toll on XRP, sending prices plunging.
Now though, Ripple and XRP are bouncing back. On Friday, Ripple Labs maintained that XRP is a digital token and not a security. Its primary argument was that XRP has utility beyond that of a regular security, such as through its open-source nature. Additionally, Ripple Labs said that XRP is correlated with Bitcoin (CCC:BTC) and Ethereum (CCC:ETH). The company has filed a Freedom of Information Act request to determine why Bitcoin and Ethereum are not considered securities, likely in hopes of proving its own case in court.
Just like that, a new wave of XRP price predictions emerged. This time, however, many came from enthusiast groups on Reddit and Telegram…
Telegram Pumps XRP Price Predictions
As Omkar Godbole wrote for CoinDesk, so-called pump and dump schemes are not absent in the cryptocurrency world. However, following the success of r/WallStreetBets with GameStop (NYSE:GME) and Dogecoin (CCC:DOGE), many enthusiasts see a new era emerging.
With that in mind, the group Buy & Hold XRP debuted on Telegram, quickly racking up more than 200,000 members and spawning other Telegram channels. Like with r/WallStreetBets, the group wanted to coordinate a rally in XRP and continue to hold onto the digital tokens. They sent XRP prices to a three-year high, erasing losses from December and bringing XRP price predictions like $1 in focus.
So what else do investors need to know? And what will this new interest in XRP price predictions mean for the cryptocurrency? To start, not everyone believes in the power of Telegram. Social media user Credible Crypto claims that as the fifth-largest cryptocurrency, it is unlikely that any Telegram group would be powerful enough to pump it. This argument comes from its 24-hour trading volume and the size of the Buy & Hold XRP group.
Even if Telegram users and Redditors are not solely responsible for the rise, we have learned just how powerful social media groups can be in recent days. With that in mind, keep a close eye on XRP and its price predictions. Where things stand, the crypto is trading near 60 cents. Also, as InvestorPlace contributor Tom Taulli wrote this morning, be sure to understand all the risks involved.
Once you acknowledge the risks, be sure to appreciate the story. If Ripple Labs can shake off the lawsuit and crypto enthusiasts can keep boosting XRP, perhaps anything is possible.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
