The XRP token has displayed a strong bearish action in January by recording a loss of more than 20% in valuation. Further, the price continues its struggle to break its important resistance level of $0.66, indicating a strong liquidation point at that level.
Many analysts predict this year to be XRP’s year as Ripple Labs is on the verge of settling its case with the SEC after a legal battle of four years. This is expected to act as a major catalyst for the price in its voyage to reclaim the $1 stand.
Historic Performance:
With a price tag of ten cents, the XRP price made its first appearance in the year 2012. Over the year, XRP price gained significant traction, resulting in it recording constant new highs. On 4th January 2018, the token recorded an all-time high of $3.84, after which the market crashed, and the price took a hit of 84% in valuation.
Following this, the price traded sideways for about two years as the market hype regained momentum and the Third Bitcoin halving took place, the XRP price took a rise in value. In the year 2021, the price reclaimed $1 tag and recorded a high of $1.9711, following which the market recorded a bearish reversal, resulting in a price plunge.
Gradually, the market regained momentum, and the price was once again above $1. As the market had just stabilized, the crypto industry experienced the Terra crash, which wiped out more than $80 Billion within hours, resulting in it experiencing another price plunge. Since then, the price has been trading under a bearish influence.
2024 Events:
Any upgrade or decision that impacts the working of this industry is considered an event in the crypto space. An event plays an important role as at times it could influence massive price actions in the market within a short time frame.
Despite the market recording a bearish trend during the first month of the year, the industry is expected to pick up significant momentum in the coming time as many major events are lined up, which collectively is expected to impact the market at a great scale. Some of these are Bitcoin Halving, Elections, Ripple vs SEC lawsuit, Potential Altcoin rally, and more.
XRP Lawsuit:
One of the most significant factors that is expected to affect the price of Ripple’s XRP this year is the ongoing case with the Securities And Exchange Commission (SEC). Ripple was primarily sued for allegedly conducting unregistered securities offerings. The case was first filed in 2020 and is expected to conclude this year.
Despite favorable legal support for Ripple, the SEC’s plan to appeal the programmatic sales ruling poses a challenge. Judge Torres initially ruled the case in favor of Ripple Labs back in July 2023. However, the legal battle continues, with both making efforts to make their stand strong in the case.
The regulatory uncertainty remains a mystery for the company as this risk poses significant challenges to the company in implementing a fresh set of strategies and plans for the platform. However, the urgency for Ripple to conclude the case is tough until it meets favorable settlement terms with the SEC.
Bitcoin Halving:
The upcoming Bitcoin Halving is the fourth halving and is expected to impact the industry greatly. The main goal of halving is to ease inflation, and hence takes place every four years.
Many analysts predict the BTC price to range between $80,000 to $150,000 post-halving. The Bitcoin halving is a periodic event that affects its supply. However, multiple factors involving both internal and external play a significant role in such situations.
The Presidential Elections:
The U.S. Presidential election is considered to be one of the most influential events of this year as it is said to impact the industry on a vast scale. If a favorable outcome comes, the industry is expected to experience a reduction in the constant fluctuations of policies by the regulators.
This will result in the industry to work more efficiently without facing constant setbacks. This may also impact the XRP price at a great scale as its community is considered to be one of the strongest the crypto industry has ever witnessed.
Conclusion:
Multiple factors are responsible for price action in the industry. The XRP price had recorded a massive drop following the Terra crash and has been trading in a consolidated for 22 months, indicating a massive bearish influence in the market. Ripple has an ATH of $3.84, which was recorded back in 2018.
With several events lining up this year, the XRP price is expected to gain massive market attention through it and possibly attempt to make a run to reclaim its $1 mark by the year-end.
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- Source: https://coinpedia.org/price-analysis/xrps-path-to-a-1-valuation-top-factors-fueling-xrp-price-in-2024/
