Ripple (XRP-USD) price has surged by 355% during the past year, benefiting from a friendlier regulatory environment, the SEC dropping its lawsuit against Ripple Labs, and growing expectations around the launch of XRP ETFs.
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However, cracks are starting to appear in the crypto space. The recent flash crash was a harsh reminder that volatility remains an inherent part of the market, and XRP’s own pullback in recent months reflects that fragility. Investors appear to be responding to fresh economic data signaling a slowdown in job growth – a development that could sap some of the risk-taking enthusiasm that once powered the rally.
The question now, is what the next three years might look like for XRP.
Looking at the bull case, top investor Chris Neiger, who ranks among the top 1% of stock pros tracked by TipRanks, argues that the same forces that fueled XRP’s earlier surge could continue to drive gains ahead. Regulators may soon approve XRP ETFs, a development that has generated plenty of excitement.
The success of Bitcoin ETFs since their debut last year offers room for optimism. They’ve attracted roughly $161 billion in assets under management and played a role in boosting Bitcoin’s price over the past year. Ethereum ETFs have also gained approval and have drawn strong investor interest, reinforcing the enthusiasm for crypto-based investment products.
“Some of XRP’s gains are already baked into its value of the cryptocurrency in the hope that the ETFs will launch soon, but it’s also possible that they continue to drive XRP higher as more people gain an easier way to invest in XRP,” said Neiger.
But there’s also a bear case to consider. XRP could encounter “significant headwinds” in the coming years if economic conditions deteriorate. Recent ADP reports showing two straight months of job losses have already cooled investor interest in XRP and other cryptocurrencies. Neiger thinks that a prolonged slowdown would likely result in less risk-taking, as worries about job security and higher costs from tariffs make investors more cautious.
So, which scenario is more likely to play out? Neiger thinks investors should be wary of the crypto market right now, XRP included. Growing uncertainty around tariffs and mounting economic concerns could weigh heavily on crypto’s performance in the coming years.
While both stocks and cryptocurrencies have surged in recent years, that momentum has led to a false sense of security that risky assets can’t lose value. If the economy does begin to slow, it’s likely that XRP investors will shift their money toward safer investments.
“All of this means that potential XRP investors should take a very cautious approach to buying the coin right now and expect more volatility ahead,” the 5-star investor summed up. (To watch Neiger’s track record, click here)
At the time of writing, XRP is trading at $2.3954.
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.