- XRP price dropped over 5% in 24 hours and is trading at $2.18 indicating a bearish trend.
- XRP’s price increased over 50% from its previous lows in a very few days.
- XRP has a market capitalization of approximately$126.78 Billion, largely influenced by prominent figures like Donald Trump.
Ripple (XRP) is a cryptocurrency, developed by Ripple Labs, on an open-source blockchain. Known to be developed by David Schwartz, Jed McCaleb, and Arthur Britto, it is pre-mined with a maximum supply of 100 Billion XRP. Developers focused on mimicking the features of Bitcoin for quick and easy transfers by allowing P2P transactions. The company owned the initial 80 Billion XRP tokens, and +$55 Billion XRP was locked in an escrow account. XRP uses a Proof of Work (PoW) consensus mechanism to validate transactions faster in 3 to 5 seconds with fees as low as $0.0002.
XRP Price Action and Historical Trends
XRP has encountered significant price adoption in the financial sector as it integrated Ripple’s decentralization and blockchain technology with major banks and payment providers allowing remittances and cross-border transactions. However, Ripple did not have a smooth journey from its beginning.
Ripple has an ongoing challenge with the U.S. Securities and Exchange Commission (SEC), which classified it as a security, which created several regulatory uncertainties. The verdict and judgment of this suit could result in a dramatic rise or fall in XRP’s price. Ripple has expanded its network to RippleNet and other non-crypto partnerships with a vision of long-term benefits.
However, Ripple is considered one of the most volatile assets in the cryptocurrency space, with sharp price fluctuations for both market sentiments and legal lawsuits. Below are the key price ranges:
- All-time high: $3.84 (January 2018)
- Price before SEC lawsuit: about $0.30 to $0.40 (2019)
- Post Battle: $0.20 to $0.60, with fluctuating rates based on legal updates and market sentiments.
In 2017, it reached its peak price of $3.84, just before the crash in the next year. Later XRP faced a downtrend for a long period. It experienced an upward trajectory in the recent years.
Price Action Overview of Ripple (XRP)
XRP has shown recent price hikes peaked at $1.63 on November 23, 2024, a significant increase of over 50% from its previous low of $1.07, a few days ago. Traders opted for profit-taking activities that fell by 4280 million after reaching the peak price.
- Current Price: $2.16
- 24-hour trading volume: $21.37 Billion
- Circulating supply: 57.11 Billion XRP
- Total Supply: 99.98 Billion XRP
- Maximum Supply: 100 B XRP
Short Term Price Prediction (2024)
In the short term, the XRP price is expected to trade between $0.40 to $2.77 as 2024 winds down. Some analyst predicts that the price may reach $3.21 under bullish market conditions. With the recent price gains, its support level has been identified at around $1.81. If the support persists, there may be further price spikes. Given the market dynamics, XRP may fluctuate with a potential dip to as low as $1.19 in January, before rebounding.
Long-Term Price Prediction of Ripple (XRP)
In the long term, the XRP price may surge from the current market price of $2.16 to as high as $9 in 2025. If the bullish market trend persists, XRP could rise to $4.1 to $10 by 2026 to 2027.
Ripple Labs has secured approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, which may compete with Tether’s USDT and USD coin. The news has led to a sudden 10% surge in XRP price.
Factors That Contributed To a Recent Price Drop in Ripple (XRP)
While XRP price action has been highly volatile, several factors contributed to the recent price drop in Ripple XRP.
- Regulatory Challenges: XRPs legal battle with SEC has created uncertainty as XRP was called as a security, which significantly reduced the confidence of investors, resulting in a price drop.
- Market Trend: market sentiments largely contribute to price fluctuations based on investor sentiment and economic conditions.
- Profit-Taking Behavior: investors often engage in profit-taking after a rally. This might result in price correction and a decline in the price. Generally, the market regains traction after the price correction.
- Investor Sentiments: The price of cryptocurrency fluctuates with the investor’s sentiments. With recent regulatory concerns, a lot of investors have sold off their assets, driving down their value.
Also Read: Key Factors That Led To The Sudden Rise Of XRP Tokens
Conclusion
The recent price action of the XRP is largely driven by challenges like the regulatory lawsuit of the SEC, fluctuating market trends, investor sentiments, and the volatility of the crypto market. The legal battle with US SEC has created significant impacts on the community which may restrict the smooth upward trend and price surge.
However, XRP is now trading around $2.16 and is expected to grow. While the short-term volatility faces short-term volatility, the long-term value of XRP looks promising, if the bullish trend continues. While the legal issue remains a question, XRP has gained a 10% surge in its price with the approval of the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin.