XRP Lags behind 2024 Crypto Rally: Potential for Major Upsurge or Further Decline?
Summary:
Despite an ongoing crypto-market rally, XRP's price has struggled to match the gains of Bitcoin and Ether, with a return of only 1.85% in 2024. Its decline is also reflected in the reduced count of richest addresses holding at least 100,000 tokens. Legal disputes with the SEC add to the cryptocurrency's uncertainty. However, a bullish technical scenario could see the price rise by 15% by mid-2024, potentially reaching a record high above $3.55 if following past trends. Conversely, a bearish scenario could result in a drop to $0.50.
The price of XRP (XRP) has noticeably fallen behind during the current surge in the cryptocurrency market, not yet returning to its all-time high from January 2018. Could the year 2024 bring about a change? Relative to the gains of Bitcoin and ETH, XRP's performance in 2024 leaves a lot to be desired with a mere 1.85% return despite an overall positive trend in the sector. By comparison, Bitcoin (BTC) and Ether (ETH) have rallied 58% and 68.50% respectively in the same timeframe. Surprisingly, the XRP/BTC pair has plummeted by 88% over the last half a decade.
Traders have recently diverted their attention to the new wave of investments in Bitcoin ETFs, Bitcoin’s halving event, and potential approval of Ethereum spot ETFs by May, which could explain the astonishing 88% drop in the XRP/BTC pair over the past five years.
From a technical perspective, XRP price has been up against significant sell-off pressure at its multi-year descending resistance line since December 2017. In 2024, it has still not managed to break above this line in a meaningful way.
The drop in XRP's value in 2024 also aligns with a reduction in its whale count. The quantity of its wealthiest accounts owning at least 100,000 tokens has noticeably fallen this year, hinting at a drop in investor interest from the more affluent.
Adding to the caution is the ongoing legal conflict between the U.S. Securities and Exchange Commission (SEC) and Ripple, as pointed out by pro-crypto lawyer Bill Morgan who has been closely following the case. The SEC vs. Ripple proceedings are expected to extend until May 2024 after U.S. District Court Judge Analisa Torres granted an extension for the regulator's submission deadline earlier this month.
Regarding a bullish case, analysis predicts a potential 15% increase in XRP price towards $0.75 by the halfway mark of 2024. This figure is close to the resistance line of the XRP/USD pair and the 0.236 Fibonacci retracement line. If XRP manages to break above its descending trendline and the 0.236 Fibonacci retracement line with conviction, this could lead the price to reach up to $1.11. As market analyst Coosh Alemzadeh highlighted, this sequence of events would mirror a pattern observed from 2014-2017. Should this pattern repeat, Alemzadeh expects XRP's price to potentially hit record levels above $3.55 in the coming months.
On the other hand, failing to break the descending trendline resistance could trigger a pullback, reducing the XRP price to $0.50, which is 20% lower than the current levels. It's crucial to note that this level serves as the ascending trendline support mark. Bulls are likely to make a stand at this critical $0.50 mark, which coincides with the 200-week exponential moving average and the long-term rising trendline support.
This piece does not present investment advice or endorsements. Any investment or trading action poses risks, and one should rely on detailed research when making informed choices.
Published At
3/10/2024 4:20:00 PM
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