In the current cryptocurrency market surge, Ripple‘s XRP has underperformed, failing to hit the peak value it reached in January 2018. Contrasted with significant gains by Bitcoin and Ethereum, which saw respective increases of 58% and 68.5% in value during the same period, XRP only managed a modest 1.85% return in 2024. Additionally, the XRP to Bitcoin value has plummeted by 88% over the past five years, highlighting its struggle to keep up with its counterparts.
Investor Focus Shift Affecting XRP
Shifting investor focus has been a key factor in this trend, with attention drawn to the rise of Bitcoin ETFs, the Bitcoin halving event, and speculation around potential Ethereum spot ETFs. These market movements have overshadowed XRP, leading to a notable decrease in value against Bitcoin.
Technical and Legal Headwinds
Technically, XRP has been unable to break through a multi-year descending trend line, which has acted as a resistance since December 2017. This resistance has repelled several attempts to close above it, particularly in 2024. On the legal front, Ripple is entangled in a prolonged dispute with the US Securities and Exchange Commission (SEC), adding to the uncertainty surrounding XRP. This case is expected to extend until at least May 2024, as indicated by recent court proceedings.
The decline of XRP in 2024 also corresponds with a reduction in the number of large-scale investors, or whales, as the number of addresses holding at least 100,000 XRP has diminished. This suggests waning investor interest in XRP amid the market’s wider rallies.
Nonetheless, a bullish scenario projects that XRP could see a 15% increase to $0.75 by June 2024. This target is contingent upon XRP overcoming the resistance of the descending trend line and the Fibonacci retracement level. A decisive breakout could potentially result in a price lift to $1.11. Conversely, a pullback could see a 20% decline to $0.50, a crucial rising trend line support level.