How XRP will reach $300 (324.22) *Part 5*
Mathematical and formulaic explanation
The reason I always set a $300 target is because my mathematical calculations explicitly point to $324.22. This price is the inevitable outcome of the liquidity velocity and institutional pool depth calculations behind the asset.
This number is not a randomly chosen, imaginary target, it is the exact mathematical intersection on the XRP Ledger between the Equation of Exchange (MV = PT) by the famous economist Irving Fisher, and the "Collateral Buffer" rules mandated by Basel III standards.
When conducting this calculation, we do not base our data on retail exchanges. Instead, we use the most concrete and solid global volume data that the institutional financial system is required to carry:
Liquid Available Supply (A): The free-floating supply ready to circulate within seconds at the exact moment of the "flip the switch" (after deducting locked structures) is roughly between 15 billion and 20 billion XRP. (The safest lower limit of 15 billion XRP has been used for this calculation).
Daily Targeted Institutional Volume (T): The daily total share flowing into the XRP tunnel from DTCC clearing operations, CME derivative collateral, and first-stage cross-border Nostro/Vostro liquidity flows: $1.2 Trillion / Day.
Regulatory Safety Buffer Multiplier (B): The mandatory depth multiplier required in the pool under Basel III and LCR (Liquidity Coverage Ratio) laws to prevent the system from locking up during instant, large-scale transfers is 4.
In the architecture of financial automation, the price (P) is found by the ratio of instantaneous transaction volume (PT) to the available liquid supply (M) in the system. However, since the system must flow uninterrupted, we must multiply the daily volume by the regulatory buffer coefficient.
FORMULA:
Price (P) = (Daily Volume * Regulatory Buffer Multiplier) / Liquid (Available) Supply
PLUGGING IN THE DATA:
Required Instantaneous Liquidity Pool Size: $1.2 Trillion * 4 (Buffer) = $4.8 Trillion
Available Liquid Supply (Mechanical Constraint): 15 Billion XRP
Price (P) = 4,800,000,000,000 / 15,000,000,000
Base Price (P) = $320
Every time a transfer occurs on the XRP Ledger, a very small amount of XRP is permanently destroyed (burned) as a transaction fee within a tenth of a second.
When we consider that global finance will enter this pipeline via tens of thousands of automated API orders per second,rotating millions of dollars in transfer volume every single moment, the factors of "supply contraction" and "slippage margin" on the network must be factored into the equation.
To maintain maximum depth efficiency and eliminate friction while institutional automated software (APIs) sweeps the order books, a network friction and depth margin of roughly 1.32% is added to the price:
$320 * 1.0132 = $324.22
XRP Velocity doesn't replace liquidity depth. You need to consider the "simultaneous" volume of global transactions
My posts are for informational purposes only.
Not a financial advice.
Everyone is responsible for themselves.
DYOR
Pray for Nepal 🇳🇵
I saw the news about the flood disaster in Nepal. While watching the video, I expected the flood to come in through the door, but I couldn’t believe what I saw.
In some videos, I saw the flood destroying houses and apartment buildings. This is a disaster even worse than an earthquake.
I offer my deepest condolences to everyone in Nepal for their losses.
It’s truly a very difficult situation.
Volatility means the inability of prices to remain stable and their movement up and down.
However, using bots to move prices up and down as desired to wipe out leveraged positions is not called volatility.
Although leverage trading has been banned in many countries, it continues on most global CEXs.
Let's say leveraged trading on CEXs is banned in a country, but transferring funds from one's own wallet to Binance Global is not banned. A person transfers funds there and trades with 50x or 100x leverage.
Such high leverage harms the crypto market.
I also want you to take precautions regarding this, thank you.
@CFTC@SECPaulSAtkins@ChairmanSelig
XRP is a hard asset 💪
Don't listen to anyone who thinks XRP is just a gas token and claims the XRP Ledger is dead. They will all get their answers soon.
Stay focused on the goal XRP Army !
Thank you Vet ���🤛
I wrote this on May 24.
SWIFT is failing at what they are trying to do themselves.
Let me say it clearly and openly: the posts SWIFT share do not reflect the truth.
They are failing and there are problems.
XRP
Yes, this is me.
In the past I was a very generous person, I couldn't hold onto money, I made bad investments and mistakes, and now the time has come to make sacrifices.
I don't go to matches, I don't go to concerts +cinema, I don't eat out, I don't go to cafes... I avoid everything that costs money. I'm doing everything I can to accumulate XRP.
I'm even staying away from the girl I like, because my goal is to build a good future.
Building a good future is the most important thing for me. Once I reach my goal, I will take a deep breath and start living freely.
XRP Fam, I wish the best and the most beneficial outcomes for all of us.
LOCK IN !
Crypto investment companies are really weird.
Some are extremely modest, while others set truly ambitious targets. Last year and at the beginning of this year, I had the chance to speak with two of the major figures leading large crypto investment firms, and their views were definitely very different from this.
Also, XRP already reached as high as $3.84 without institutional adoption and utility-focused growth.
When utility focused growth begins, when it starts being priced like a commodity, and when institutional adoption kicks in, if XRP is still at these price levels, that would be a major failure.
That's why in the XRP community we say
“Know what you hold”
I’m not a trader, I HODL.
I’m excluding professional traders from this.
Of course there will be manipulation, we can never completely prevent it.
What I’m talking about is leveraged trading. Having 40x, 50x, or 100x leverage is not healthy for the market. Momentum is lost because CEXs wipe out the leveraged positions. Dropping 30% 60% within seconds and min, when there is buying pressure and an uptrend, this suddenly kills the momentum.
The leverage system needs to be regulated.
That's what I'm advocating for.