Crypto analyst Lewis Jackson recently released a video where he discusses his personal price predictions for XRP, a cryptocurrency that has garnered significant attention for its potential utility in the financial sector. Jackson emphasizes the difference between speculation-based and utility-based price predictions, providing insights into what he believes could be the future price range for XRP.
Speculation vs Utility
According to Jackson, there are two primary ways to look at cryptocurrencies: speculation and utility. So far, the crypto market has been 100% driven by speculation, with utility playing no role. He argues that while utility-based predictions can offer astronomical figures like $50,000 per XRP, these are not grounded in the current reality where utility has yet to be a factor.
The Unpredictability of Utility
Jackson points out that utility-based predictions are challenging because they involve factors that have never occurred before. For instance, it’s uncertain how many banks and institutions will hold XRP versus using it. The impact of utility features like on-demand liquidity on XRP’s price is also unknown. Therefore, Jackson believes that utility-based predictions are not reliable for formulating exit strategies.
The Role of Biology in Speculation
Jackson suggests that speculation is biologically driven, influenced by human emotions like fear and greed. He mentions that speculation cycles in the crypto market seem to be around four years and are more correlated with stock market highs than with Bitcoin halvings. He recommends using biologically-based indicators like the Fibonacci retracement tool for more accurate speculation-based predictions.
Jackson’s Personal Price Prediction for XRP
Based on his analysis and the Fibonacci scale, Jackson predicts that XRP could reach anywhere between $8 and $13 in the next speculative bull run. He advises investors to accumulate XRP based on these speculative figures rather than utility-based predictions that have not yet materialized.
Accumulation and Exit Strategies
Jackson emphasizes that his exit strategy is based on speculation and not on utility. He advises investors to accumulate enough tokens to reach their financial goals should XRP hit his predicted price range of $8 to $13. He also suggests that investors decide how much to allocate for short-term profits based on their confidence in either a speculative or utility-driven market environment.