A Wall Street analyst suggests XRP could now hot $4-$16 due to a recent reduction in the XRP ledger.
A recent reduction in the reserve fee for the XRP Ledger (XRPL) has sparked speculation about a potential increase in XRP’s value.
Wall Street analyst and financial author Linda P. Jones elaborated on the implications of this change, suggesting that XRP might experience significant price growth soon.
The reserve fee, which dictates the minimum amount of XRP required to be held in a wallet, was lowered from 10 XRP to just 1 XRP.
This fee has gradually decreased over time, originally starting at 20 XRP.
Jones highlighted that previous reductions in the reserve requirement often preceded notable price increases for XRP.
The decision to lower the reserve fee was made on December 2, partly in response to concerns from the XRP community regarding the burdensome previous figure.
Critics argued that the higher reserve discouraged new users from adopting the cryptocurrency, as it required a substantial amount of funds to open new accounts.
Community leaders, including Wietse Wind, founder of XRPL Labs, actively advocated for this change, with Wind backing a dramatic 90% reduction.
The previous 10 XRP reserve fee became particularly challenging as XRP’s price surged.
At $0.50, the 10 XRP requirement amounted to $5, but as XRP rose to $2.50, it translated to a $25 commitment, prompting further concerns.
With the fee now set at 1 XRP, which equals approximately $2.60 at current prices, the barrier to entry has significantly lowered, encouraging greater adoption.
Jones noted in her analysis that reductions in reserve fees have historically been linked to subsequent price growth for XRP.
She pointed out that after the last fee cut from 20 to 10 XRP, the price of XRP increased, suggesting a similar outcome might occur now.
Based on past trends, she speculated that XRP’s price could rise to between $4 and $16, translating to a potential increase of 54% to 515% from its current trading price of $2.28.
This optimistic outlook highlights the possibility of a substantial rally in XRP’s value following the recent fee adjustment.
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