XRP Struggles to Reach Peak as Crypto Market Rallies https://t.co/nmk7c4NkdY
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Challenges Mount for XRP from Ripple Amid Crypto Market Surge
Mon 11 Mar 2024 ▪
3
min of reading ▪ by
Getting informed
▪
Trading
In the context of a widespread surge in the crypto market, XRP, the native cryptocurrency of Ripple, appears to be facing a unique situation. While several cryptocurrencies have managed to reach their all-time high prices again, XRP is struggling to follow the trend. The asset raises concerns related to its loss of valuation over the past 6 years.
Ripple’s native cryptocurrency has lost 88% of its 2018 price peak!
The performance of Ripple’s native cryptocurrency is concerning analysts and users. Indeed, as the market is experiencing a resurgence, especially among major cryptos, Ripple’s XRP, a top 10 asset, lags behind.
The recent performance of the asset is far from glorious, with XRP eroding 2.20% in 24 hours. More worrying is that, unlike cryptocurrencies like bitcoin (BTC) and ether (ETH), XRP’s valuation has fundamentally melted away in recent years.
The fact is that XRP has not managed to regain its maximum valuation from January 2018. The asset is content with a meager yield of 1.85% in 2024. Where bitcoin and ether have recorded gains of 58% and 68.50%, respectively, over the same period.
The figures show that the value of the XRP/BTC trading pair has dropped 88% over the past 6 years. In other words, a user who invested in this pair five years ago would have lost 88% of their initial investment. This is a significant drop that indicates very poor performance of XRP compared to bitcoin over this period.
The reasons behind XRP’s collapse
According to analysts, various factors can explain the drop in XRP’s valuation over the past 6 years. Among these, the diversion of investors to the recently launched Bitcoin spot ETFs is often mentioned.
There is also anticipation of the upcoming bitcoin halving and speculation about the approval of an Ethereum Spot ETF by May 2024. But the current legal uncertainties related to the lawsuit against the SEC also play a role.
Additionally, Ripple’s native cryptocurrency has technically been facing significant selling pressure since December 2017. XRP is encountering resistance from the multi-year downward trend line. Despite their attempts, investors have failed to achieve a decisive breakthrough beyond this critical barrier.
However, a decisive break above this resistance could propel XRP towards $1.11. A performance that would reflect a price movement pattern observed between 2014 and 2017. If history repeats itself, XRP could then reach new heights above $3.55 in the coming months. Currently, the XRP price is around 0.60 dollars.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.