XRP Price Dips 3% in 24 Hours, can it Recover?

24 January 2024

in XRP

Reading Time: 5 mins read

XRP Price Dips 2.4% in 24 Hours: Can the Cryptocurrency Stage a Recovery?

Crypto News: Over the last day, XRP, the native cryptocurrency of XRP Ledger, has experienced a slight decrease, going from US$0.564 to US$0.512, a change of 2.96%. With the current changes in pricing, XRP’s market value is now US$29.97 billion. This year, XRP has changed by -10.34% thus far. The current XRP price is US$0.51236.

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XRP is intended to act as a bridge currency, enabling quicker and less expensive cross-border transfers. Using the outdated financial system, sending money abroad can be costly and take one to four working days. With XRP, cross-border transactions may be settled on the open-source XRP Ledger blockchain in under five seconds for a fraction of the price of more conventional techniques.

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XRP, however, has a few obstacles to overcome that might have an impact on its acceptance and pricing performance. A legal battle that persists between the U.S. Securities and Exchange Commission (SEC) and Ripple, the firm that built the XRP Ledger, concerns the SEC’s allegations that Ripple and its officials issued unregistered securities in the form of XRP tokens. The December 2020 lawsuit was filed, and as a result, there has been considerable XRP market volatility and uncertainty. Additionally, trading of XRP has been suspended on a few large platforms, including Coinbase and Binance.US

The rivalry from other cryptocurrencies, including Stellar Lumens (XLM), which is also based on the XRP Ledger technology, and Bitcoin (BTC) and Ethereum (ETH), which have greater market shares and network effects, that provide comparable or superior solutions for cross-border payments presents another difficulty. The need for XRP and other cryptocurrencies may decline in the future since several central banks and financial organizations are creating their own digital currencies or payment systems.

In the long run, XRP still has a chance to bounce back and expand despite these obstacles. Technical research indicates that XRP is approaching a historical accumulation zone when buyers often enter the market and drive prices higher. This is one of the variables that might boost the XRP price. An ascending trendline that has offered support throughout notable market downturns, according to CoinGape, is what supports XRP and encourages purchasers to continue on an upward trajectory. Higher price points, like US$0.70 and US$0.75, may be the targets of XRP’s sideways consolidation if it can maintain above this trendline. However, XRP may indicate a bearish turn and cause more losses, maybe down to US$0.47 and US$0.42, if it breaks below this trendline.

The fundamental analysis, which focuses on the uptake and innovation of XRP and its ecosystem, is another element that might raise the price of XRP. Despite the SEC litigation, Ripple is nevertheless growing its network of partners and clients throughout the world, particularly in the Asia-Pacific area where XRP enjoys more benevolent regulatory conditions. For example, Ripple and Bhutan’s central bank recently announced a collaboration to test a central bank digital currency (CBDC) that utilizes Ripple’s technology. In addition, Ripple established a US$250 million fund to assist programmers and business owners who build services and apps for the XRP Ledger.

Additionally, there is a strong and vibrant community of investors and supporters of XRP who are committed to the company’s mission and value offer. Campaigns and petitions have been formed by a few of them to put pressure on the SEC and the exchanges to withdraw the lawsuit and allow trading of XRP to restart. To increase XRP’s visibility and interest among the general public and potential users, several of them have also produced instructional and marketing content. The price of XRP has decreased by 2.4% in a single day, but it may rise in the future based on the outcome of the SEC case, competition from other cryptocurrencies, and the uptake and development of XRP and its ecosystem. With a 3.5% decrease on the day, XRP is presently trading at US$0.551.