The Ripple (XRP) community expects that the end of the 51-month-long legal tussle with the SEC will pave the way for institutional adoption. The community’s attention has shifted to MicroStrategy’s Executive Chairman, Michael Saylor, over whether he could start diversifying his crypto portfolio with XRP. If this happens and Saylor sells half of MSTR’s Bitcoin holdings to buy Ripple, can XRP price reach $1,000?
XRP Price Target If Michael Saylor Swaps $21B BTC to Ripple
MicroStrategy, which was recently rebranded to Strategy, currently holds 499,096 BTC valued at $43 billion. The institution is the fourth-largest Bitcoin holder after Satoshi Nakamoto, Binance, and BlackRock.
MicroStrategy Bitcoin Holdings
Meanwhile, despite being a Bitcoin maxi, Saylor recently told CNBC that buying tokens such as XRP was a way of supporting US investments. This sparked speculation that Saylor could dip his toes in the Ripple ecosystem, possibly buying XRP.
MicroStrategy’s most realistic portfolio diversification would be swapping half of its Bitcoin holdings for Ripple. This would mean that the institution buys $21 billion worth of XRP. If this purchase happens, the impact on XRP price would be phenomenal.
Impact of $21B XRP Purchase on Price
For context, XRP price today trades at $2.46. This means that Saylor’s $21 billion purchase would give the company 8.5 billion Ripple tokens. This is equivalent to 15% of the total XRP supply.
The additional buying pressure and the reduction of the circulating supply considering Saylor’s HODL strategy for crypto holdings will easily propel XRP price to all-time highs. Ripple would reach $10 within a few hours of the purchase. A $100 price target could also be achieved within weeks.
If Saylor buys XRP, the price could also easily shoot up to $1,000. Buying such a large number of tokens would spark massive retail trading activity, and see XRP outperform the rest of the crypto market.
Is $1,000 a Realistic Target for XRP Price?
A $1,000 price target for XRP is not impossible, but it is also not realistic under the current tokenomics. XRP has a supply of 58 billion tokens. This would mean that its market cap will reach $58 trillion if Saylor’s purchase pushed XRP price to $1,000.
At a $58 trillion market cap, XRP would be worth more than the annual US GDP. This is also around 20 times higher than the current market cap of the entire crypto industry.
Nevertheless, Ripple might choose to change its tokenomics to make a $1,000 XRP price target possible. The company can do this in two ways: placing more XRP tokens in escrow or conducting massive token burns.
If the tokenomics change and the XRP supply dropped to 1 billion, it would attain a $1 trillion market cap and rival Bitcoin’s dominance.
Ripple Technical Analysis
Top market analyst and early Bitcoin advocate Davinci Jeremie has given a bullish XRP price prediction. He believes that Ripple will not only reclaim its $3 price target, but also rally to more than $20.
“Although I hate XRP and I think it’s a bad idea as a cryptocurrency, I have to admit that according to technical analysis, it’s going a lot higher than $3. I think it will get as high as $20.”
The analyst’s prediction comes as the four-hour XRP price chart revealed that bullish momentum was building. Ripple has been making a series of higher lows, as the RSI line also tips north. This confirms Jeremie’s bullish analysis that XRP could go higher than $20.
XRP/USDT: 4-hour Chart
To sum up, XRP price could go on a parabolic rally if Saylor swaps $21B BTC for Ripple. However, for XRP to attain the $1,000 target, Ripple would have to change its tokenomics. XRP’s four-hour price chart shows that positive momentum is building, which could spark a rally to $20 soon.
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