Cardano (ADA) and XRP are popular entry-level investments in the crypto market due to their low prices below $1. But what are the prospects for both altcoins in 2023? We’ll take a look at the fundamentals as well as the technical analysis perspective.
XRP Prediction 2023
The success of the XRP price this year could largely depend on the outcome of the court case between Ripple and the U.S. Securities and Exchange Commission (SEC). If Ripple manages to leave the courtroom as the winner, the price could skyrocket.
According to current projections, including from Ripple’s legal counsel Stuart Alderoty, the trial could likely end in the second quarter of 2023. A Ripple victory could trigger a reverse effect on the XRP price as of December 2020.
The week the SEC filed its lawsuit, the XRP price fell a whopping -72% in seven days. The price crashed from $0.60 to $0.17. Compared to Bitcoin and Ethereum, XRP still shows a massive undervaluation since the event.
While BTC and ETH are 69% and 68% down from their all-time highs, respectively, the current XRP price is 88% below its all-time high of $3.40. Thus, XRP bulls will be eager to make up for this shortfall.
A Ripple victory could reactivate old and new partnerships. During the Ripple Swell conference in November, CEO Brad Garlinghouse revealed that U.S. banks and companies are in the pipeline as partners once the court case is out of the way, as Bitcoinist reported.
Related Reading: XRP Bulls Aim For $1 As Crypto Advances With 12% Weekly Pump
Garlinghouse said, among other things: “Bank of America is a huge partner of Ripple,” and went on to explain that “Bank of America stands to gain really big when the settlement happens because they are gonna have a huge competitive advantage over their competitors by using ODL and the marketplace.”
Also, Ripple’s partnership with MoneyGram, which was stalled by the SEC’s lawsuit, could get a new chance. Ripple had already bought shares in MoneyGram amounting to about 10% before the lawsuit.
Due to the SEC lawsuit, both partners amicably ended the partnership and agreed to leave all options open for a new collaboration at a “later” date. Also bullish could be the relisting of XRP on U.S. exchanges like Coinbase, where trading was suspended because of the SEC.
At the same time, a Ripple loss against the SEC could nullify the positive catalysts for the XRP price, and cause a massive dump.
A look at the 1-week chart of XRP shows that the price is currently stuck below the resistance zone at $0.40. Once broken, XRP bulls could target the breakout above $0.60 before the magical $1 price will be the main goal.
Should XRP crush this price as well, the $2 mark would be the next big target, which proved to be an unbreakable resistance in April 2021.
Cardano (ADA) Prediction 2023
The Cardano (ADA) price is also 89% below its all-time high of $3.09, which was reached in September 2021. This year, there are major updates in store for the Cardano ecosystem that could impact the ADA price.
The community is currently eagerly awaiting the launch of the layer-2 scaling solution Hydra, which is expected to massively increase transaction throughput and make Cardano one of the fastest blockchains on the market with one million transactions per second (TPS).
In addition, Cardano will see the launch of the stablecoin Djed. This could also be significant for the Cardano DeFi ecosystem.
In general, the size of Cardano’s DeFi ecosystem still lags far behind that of Ethereum and other major blockchains. Therefore, the growth of this sector will likely be one of the most important factors for the ADA price.
Another important project for 2023 is Cardano’s own privacy sidechain called “Midnight.” The developers have already been working on this project in secret for several months. It is supposed to be a sidechain of Cardano that will have its own token called “DUST” and anonymously executable smart contracts.
The 1-week chart of Cardano (ADA) shows that the price has managed to break out of the downtrend that has been persisting since April, with a retest currently underway. Should ADA bounce up from this descending trendline, the $0.69 level would be the next major hurdle.
Subsequently, Cardano (ADA) might be able to tackle the psychologically important $1.00 level.
Which Is Better: XRP Or Cardano (ADA)?
XRP and Cardano (ADA) show similar price behavior over the last two years and have great upside potential due to their strong fundamentals. However, given the unpredictable outcome of the court battle between the SEC and Ripple, XRP has a slightly higher investment risk.
Featured image from Gam-Ol / Pixabay, Chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
As an enthusiast and expert in the field of cryptocurrency, particularly Cardano (ADA) and XRP, I bring a wealth of knowledge and a keen understanding of the factors that influence their performance in the market. My expertise is rooted in a deep understanding of blockchain technology, market trends, and the intricate dynamics of specific cryptocurrencies.
Now, diving into the analysis of the provided article on the prospects of Cardano (ADA) and XRP in 2023:
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XRP Prediction 2023:
- The article emphasizes the significant impact of the court case between Ripple and the U.S. Securities and Exchange Commission (SEC) on XRP's price in 2023.
- Stuart Alderoty, Ripple's legal counsel, is mentioned as a source for current projections, suggesting the trial's potential conclusion in the second quarter of 2023.
- The historical context is provided, highlighting the drastic -72% price drop of XRP in December 2020 following the SEC's lawsuit, contrasting it with Bitcoin (BTC) and Ethereum (ETH) price movements.
- The potential for a Ripple victory to rekindle partnerships and collaborations, such as those with U.S. banks and MoneyGram, is discussed.
- The importance of XRP relisting on U.S. exchanges like Coinbase is mentioned, as it could positively impact the coin's value.
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Cardano (ADA) Prediction 2023:
- Cardano's current price, 89% below its all-time high of $3.09 in September 2021, is highlighted.
- Anticipation is built around major updates in the Cardano ecosystem, particularly the launch of the layer-2 scaling solution Hydra, expected to significantly enhance transaction throughput.
- The upcoming launch of the stablecoin Djed and the growth of Cardano's DeFi ecosystem are mentioned as factors that could influence ADA's price.
- The introduction of Cardano's privacy sidechain called "Midnight" is discussed, describing it as a sidechain with its own token, "DUST," and the ability to execute anonymous smart contracts.
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Comparative Analysis - XRP vs. Cardano (ADA):
- Both XRP and Cardano (ADA) are noted for being 88% and 89% below their respective all-time highs, emphasizing their potential for significant price movement.
- The article suggests that XRP and ADA exhibit similar price behavior over the past two years and share great upside potential due to strong fundamentals.
- The higher investment risk associated with XRP, stemming from the outcome of the court battle with the SEC, is acknowledged.
In conclusion, the analysis provides a comprehensive overview of the factors influencing the future performance of XRP and Cardano (ADA) in 2023. It balances technical analysis with fundamental factors, considering legal proceedings, partnerships, ecosystem developments, and market dynamics. Investors are reminded to conduct their own research and exercise caution due to the inherent risks in cryptocurrency investments.
