Cardano (ADA) and XRP are popular entry-level investments in the crypto market because their prices are below $1. But what are the prospects for both altcoins in 2023? We will take a look at the fundamentals as well as the technical analysis approach.
XRP Prediction 2023
The success of the XRP price this year may depend largely on the outcome of the court case between Ripple and the US Securities and Exchange Commission (SEC). If Ripple manages to emerge from the courtroom as a winner, the price could skyrocket.
According to current estimates, including Ripple’s legal counsel Stuart Alderoty, the trial could possibly end in the second quarter of 2023. Ripple’s victory could have a negative impact on the XRP price by December 2020.
The week the SEC filed its lawsuit, the price of XRP fell by -72% in seven days. The price fell from $0.60 to $0.17. Compared to Bitcoin and Ethereum, XRP still shows massive declines since the event.
While BTC and ETH are down 69% and 68% from their all-time highs respectively, the current XRP price is 88% below its all-time high of $3.40. As such, XRP bulls will be eager to make up for this shortfall.
A wave victory could reactivate old and new partnerships. During the Ripple Swell conference in November, CEO Brad Garlinghouse revealed that US banks and companies are in the pipeline as partners once the court case is settled, according to Bitcoinist. Reported.
Garlinghouse said, among other things: “Bank of America is a huge partner of Ripple,” explaining that “Bank of America has a really big advantage when settlement happens because they have a huge advantage over their competitors. Achieving a more competitive edge by using ODL and the marketplace.
Also, Ripple’s partnership with MoneyGram, which was stalled due to an SEC lawsuit, may get a new lease on life. Ripple already bought about 10% of shares in MoneyGram before the lawsuit.
Because of the SEC lawsuit, the two partners amicably ended the partnership and agreed to leave all options open for a new collaboration at a “later” date. There may also be a relisting of XRP on US exchanges like Coinbase, where trading was suspended due to the SEC.
At the same time, the loss of a wave against the SEC could eliminate the positive catalyst for the XRP price, and cause a massive dump.
A look at XRP’s 1-week chart shows that the price is currently stuck below the resistance zone at $0.40. Once broken, XRP bulls could target a breakout above $0.60, before the magical $1 price becomes the primary target.
If XRP were to crush this price as well, the $2 mark would be the next major target, which proved to be an unbreakable resistance in April 2021.
Cardano (ADA) Prediction 2023
Cardano (ADA) is also down 89% from its all-time high of $3.09, reached in September 2021. This year, there are major updates to the Cardano ecosystem that could affect the value of ADA.
The community is currently eagerly awaiting the launch of the layer-2 scaling solution Hydra, which will massively increase transaction throughput and make Cardano the market leader with over 1 million transactions per second (TPS). Expected to build one of the fastest blockchains.
In addition, Cardano will see the launch of the stablecoin Djed. This could also be important for the Cardano DeFi ecosystem.
In general, the size of Cardano’s DeFi ecosystem still lags behind 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 secretly working on the project for months. It is supposed to be a side chain of Cardano that will have its own token called “DUST” and will have anonymously executable smart contracts.
The 1-week chart of Cardano (ADA) shows that the price has managed to break out of the downtrend since April, with a retest underway. If ADA should break above this downtrend line, the $0.69 level will be the next major hurdle.
After that, Cardano (ADA) may be able to deal with the psychologically important $1.00 level.
Which is better: XRP or Cardano (ADA)?
XRP and Cardano (ADA) have shown similar price behavior over the past two years and have strong upside potential due to their strong fundamentals. However, given the unexpected outcome of the court battle between the SEC and Ripple, the risk of investing in XRP is a bit high.
Featured image from Gam-Ol / Pixabay, chart from TradingView.com
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