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Can XRP make you a millionaire in 2024?

Can XRP make you a millionaire in 2024?

Investing in cryptocurrencies like XRP can be a rollercoaster experience, sometimes fueled by the dream of becoming a millionaire. For that, cryptocurrency investors look for value asymmetry in the expectation of quick price appreciation while deploying capital accordingly.

First, “becoming a millionaire” has different meanings according to the available investment capital. Someone with a $500,000 purchase would need XRP’s price to double to make this person a millionaire. In contrast, a $100,000 investment would require the token’s price to increase by 10 times to reach $1 million.

A 100% price surge is a solid expectation for XRP in 2024 if things go well for the digital asset. However, a 900% increase would require an extremely favorable scenario and is unlikely to happen even during a bull market.

Essentially, price appreciation is the result of an increased demand over an asset’s circulating supply. Considering XRP has a high inflation rate arising from Ripple’s monthly unlocks and millionaire sell-offs, the demand for the token must overcome these numbers by a large amount – which does not always happen.

XRP price analysis and the road to become a millionaire

As of writing, XRP trades at $0.50 per token, close to an important support level of around $0.47. Doubling up from here would reach the $1 psychological resistance and make $500,000 worth of investors millionaires.

XRP/USD daily price chart. Source: Finbold

On the other hand, a 10 times surge would mean XRP at $5. This is 30% above the token’s historical all-time high at $3.84, which is already challenging due to Ripple’s inflation. As reported by Finbold, XRP would trade for less than $2.39, facing the same demand of 2018 during its all-time high.

Interestingly, a $2.39 forecast would require investors to purchase nearly $250,000 of XRP today to become a millionaire.

However, most indicators suggest a dominating bearish sentiment for Ripple’s token. The company faces regulatory and court challenges against the Securities and Exchange Commission (SEC) in the United States.

Additionally, Chris Larsen, CEO at Ripple, had his personal XRP account hacked for hundreds of millions of dollars. All this happened during continued monthly selling pressure from the company and a relevant validator stepping away from the XRL Ledger.

Looking onchain, Santiment spotted an increase in the number of transactions worth over $1 million on January 31. This could be from whales accumulating and withdrawing from exchanges or sell-offs from deposits. Chris Larsen’s hacker sent over $112 million in multiple transactions to sell the stolen XRP, which could have influenced this metric.

On the bright side, Bitcoin (BTC) could lead a bull run in 2024 with its halving. Thus, XRP and altcoins could benefit from that. Also, a positive outcome from the SEC vs. Ripple lawsuit or a lower supply inflation from the company’s sell-offs could act favorably for XRP, summed with more adoption and use cases.

It is important to understand that there is no shortcut to becoming a millionaire, and XRP may impose extra challenges. This cryptocurrency is already among the most valuable coins in the market, meaning a lower possible upside than cryptocurrencies that are less capitalized. Investors must be cautious and understand the risks of investing in crypto and XRP.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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