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During the recent global crypto market crash, XRP has experienced a decline in performance. In the last month, the token has experienced a 17.84% drop, raising uncertainty about its future path. This decline raises an important question: Is XRP price capable of making a comeback despite current market obstacles? In this article, we delve into the complex environment surrounding XRP to uncover the possibilities of its resurgence in 2024.
The XRP market has experienced fluctuations over the past few days, with a price of $0.5046 showing a decrease of 2.98% in the last 24 hours. Over a week, the price has dropped by 5.44% and a decrease of 19.76% over the past month.
The token boasts of a market capitalization of approximately $27.89 billion, taking its position as the 7th largest cryptocurrency, according to CoinMarketCap.
XRP has experienced a surge in its trading volume by 77.37% in the past 24 hours, totaling $1.02 billion, with a circulating supply of 55.24 billion tokens. The token recorded an all-time high of $3.84 on January 4, 2018, although showing a decline of 86.79% since then.
Various factors could influence the price recovery of XRP as discussed next.
The global crypto market has been struggling in its performance with multiple crashes and slow downs before and after the just ended fourth Bitcoin Halving. The recovery of the market is crucial for the price recovery of XRP due to various factors. Market sentiment plays a significant role as positive sentiment can lead to increased buying pressure and demand for XRP.
The price recovery of XRP is influenced by Bitcoin dominance, as a rebound in BTC can boost investor confidence to invest in altcoins such as XRP. Increased investor trust and willingness to take risks in the market rebound could drive up the demand for XRP.
Market dynamics play a role as well, with correlations between cryptocurrencies weakening during recovery, potentially benefiting projects like XRP perceived as undervalued or strong. Additionally, bullish technical signals and patterns during market recovery can attract technical traders to XRP, further boosting investor confidence in its price resurgence.
Despite a 17% increase in XRP’s price over the past 10 days, the trading volume is still on the rise. The continuation of the upward trend will rely on the presence of enough demand to uphold it.
A substantial rise in trading volume indicates increased activity and interest in XRP. Increased levels of trading activity can enhance liquidity and aid in determining prices, simplifying the process of matching buy and sell orders in the market. In case the rising volume comes with purchasing pressure, it may signal a boost in investor trust and aid in the recovery of prices.
Ripple continues to face a major obstacle in its legal conflict with the SEC. The result of this situation is predicted to greatly affect the price of XRP. If XRP is considered a security, uncertainty regarding its regulatory status could result in limitations and reduced investor trust.. Market perception may worsen, deterring new investors and businesses.
Legal challenges could also hinder partnerships and adoption of Ripple’s technology. This could limit XRP’s utility and ecosystem growth, affecting its price recovery. Additionally, market volatility and speculation may increase due to legal proceedings, causing sharp price fluctuations in XRP.
Investors must consider the risks and opportunities presented by these legal issues. A positive resolution could boost market sentiment and aid in the recovery of XRP’s price.
On June 13, 2023, US judge Analisa Torres ruled in favor of Ripple Labs Inc., stating they did not violate federal securities law with XRP sales. This legal win caused XRP value to surge 75% by late afternoon. This victory is significant as it is the first for a crypto firm against the SEC, although the SEC did secure a partial win in the case.
The acknowledgement by the European Corporate Governance Institute (ECGI) that XRP is a utility token is a major advancement that has the potential to enhance its price recovery through different means. Initially, the clarification offers regulatory certainty, alleviating investor concerns and possibly boosting demand for XRP. Als
Additionally, acknowledging the utility of XRP enhances its position in aiding cross-border transactions, attracting banks and financial firms, and potentially increasing its popularity. Favorable updates from popular organizations such as the ECGI, also have the potential to influence market sentiment and draw in fresh investors, therefore boosting XRP’s value.
Finally, categorizing XRP as a utility token differentiates it from securities, mitigating regulatory uncertainties and attracting risk-averse investors.
Furthermore, the on-chain lending proposal from RippleX has the potential to revolutionize XRP. This loan system is expected to make it easier for digital assets to be lent and borrowed directly on the XRP Ledger, potentially boosting the usefulness and worth of the XRP token.
1/ Today, devs @aanchalmalhotre and Vito Tumas introduced a proposal for a Native Lending Protocol on the XRP Ledger that would further expand its DeFi capabilities. Let's break down what this means for the ecosystem 🧵
— RippleX (@RippleXDev) April 12, 2024
Although XRP may face obstacles and uncertainties in the future, there are positive indicators indicating a possible increase in its value. XRP is ready to recover from recent obstacles, with its utility token status confirmed by the ECGI and changes in trading volume and regulations. Nevertheless, it is important for investors to stay alert and knowledgeable, taking into account the potential risks and opportunities that come with market conditions and external factors.
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