As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and regulatory hurdles. Having closely followed the XRP saga since its inception, it is clear that the asset has been treading waters amidst a perfect storm of market sentiment and regulatory challenges.
Over the past three days, the value of XRP has been steadily rising, offering optimism for investors regarding recovery. Yet, even with substantial advancements in development and winning a lawsuit against the SEC, XRP’s price has remained stagnant amidst cryptocurrency market fluctuations. After five years, some are questioning if XRP will ever experience a significant price surge.
XRP Price Suppressed By Market Sentiment & Regulations
Over the past week, members of the Ripple team participated in the 2024 Korea Blockchain Week (KBW). During their time there, they shared intriguing updates about Ripple’s future plans, such as making the XRP Ledger programmable. Furthermore, CEO Brad Garlinghouse hinted that the long-anticipated launch of RLUSD might occur earlier than previously speculated.
Despite a persistent negative outlook towards XRP, as indicated by a significant decrease in transaction activity on its network (as shown by data from XRP Scan) from September 8 to 9, the market sentiment has stayed low.
Furthermore, ongoing regulatory challenges have suppressed the value of XRP for an extended period, causing excitement about the coin to seemingly vanish entirely. The coin’s price movements demonstrated this when Ripple and the SEC came close to reaching a settlement. The court mandated Ripple to pay $125 million following negotiations that originally sought $2 billion. This agreement marked the end of the legal dispute, as Judge Analisa Torres ruled in July 2023 that XRP was classified as “non-security.
As I observed the market dynamics, it was intriguing to note that although XRP experienced a substantial 70% increase initially, it swiftly erased all those gains over the subsequent two months. This disappointing performance of XRP during such a critical developmental phase suggests a significant level of apprehension among investors. This uncertainty could potentially cap the price growth, even in a bull run.
Ripple Supply & Market Manipulation
Many people hope that Ripple’s upcoming stablecoin will offer sufficient liquidity to make XRP a vital foundation of the future digital economy. Yet, the value of XRP has consistently fluctuated between $0.25 and $0.70 for quite some time, making a sudden price surge unlikely.
Some people have proposed the idea that Ripple may be influencing the price due to its unique design of the XRP tokens. Yet, these accusations lack substantial evidence.
Unlike traditional blockchains, Ripple’s XRP system doesn’t follow the usual model. Instead of creating new XRP coins gradually through mining, Ripple initially minted a total of 100 billion coins and kept most of them in escrow. Only a portion of these coins are currently in circulation.
Monthly, Ripple puts a billion XRP up for sale, yet any leftover coins get put back into an escrow account and wait their turn to be distributed. Some people argue this practice gives Ripple influence over the cost of XRP.
XRP Price Eyes A 19% Short-Term Fall
The price of XRP appears to have slipped out of an equilateral triangle formation, potentially indicating a further decline. However, there may be a minor uptick of around 7% to touch the bottom line of this pattern again before a larger drop towards approximately $0.42 ensues.
The volume remains steady as prices decrease, suggesting that new investors are not showing much enthusiasm, while existing ones might be offloading their holdings.
Should XRP‘s price retrace to its triangle pattern during the potential correction, it might contradict the current bearish prediction, potentially causing a spike in Ripple’s value up to $0.6, and possibly even reaching $0.65.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- TON PREDICTION. TON cryptocurrency
- Strongest Magic Types In Fairy Tail
- LUNC PREDICTION. LUNC cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- ANKR PREDICTION. ANKR cryptocurrency
2024-09-09 14:28