Connect with us

Cryptocurrency

Must Rally 70% To Reconquer $1 Peak

Published

3w ago

on

/ 2468 Views

The price of XRP, the native token used on RippleNet for cross-border payments, has remained stubbornly below the coveted $1 mark for months. This, despite a broader Cryptocurrency bull run that began roughly six months ago. While some analysts predict a swift surge to bridge the gap, others remain cautious due to ongoing legal battles and a volatile market.

Currently, XRP hovers around $0.59, a significant distance from the $1 many investors had hoped for. The token has experienced significant volatility in recent months, oscillating between $0.50 and $0.65. A brief rally to $0.75 in March offered a glimmer of hope, but it was quickly followed by a retreat.

XRP: Several Obstacles To Overcome

This underwhelming performance can be attributed to several factors. The ongoing lawsuit between Ripple Labs, the company behind XRP, and the US Securities and Exchange Commission (SEC) continues to cast a shadow over the token’s future. The SEC alleges that XRP is an unregistered security, a claim Ripple vehemently denies. The uncertainty surrounding the lawsuit has undoubtedly dampened investor sentiment.

Further complicating matters is the prevailing bearish sentiment in the Cryptocurrency market. Bitcoin, the world’s leading Cryptocurrency, has experienced a significant correction in recent weeks, dragging down the entire market with it. This broader market trend has limited XRP’s potential for independent growth.

XRP market cap currently at $31.6 billion. Chart: TradingView.com

Positive Vibe Lingers

However, a wave of optimism persists among some XRP proponents. They point to the token’s underlying utility on RippleNet, a network designed to facilitate faster and cheaper international payments.

RippleNet boasts a growing list of institutional partners, including major banks and financial institutions. This adoption, they argue, positions XRP for significant growth once the legal issues are resolved and the market stabilizes.

Adding fuel to this optimism are analysts who foresee a dramatic price increase for XRP in the near future. Some, like analyst Tylie Eric, have boldly predicted a 60% surge within a short timeframe, citing parallels to the explosive bull run of late 2017.

Others, like EGRAG, a commentator within the XRP community, believe the token is mirroring the pre-bull phase of that period, suggesting an imminent breakout.

Meanwhile, before this cycle’s high, XRP’s price could rise 15 times in the near future, according to a well-known cryptocurrency analyst.

However, not everyone shares this enthusiasm. Researchers at Changelly, a Cryptocurrency trading platform, hold a more conservative view. They believe that reaching $1 by the end of April is unlikely, with their most optimistic target for the month being $0.75.

The future trajectory of XRP remains uncertain. Overcoming the $1 hurdle will require a coNFLuence of factors, including a favorable outcome in the SEC lawsuit, a resurgence of bullish sentiment in the broader market, and a continued demonstration of RippleNet’s utility.

To make up for the $1 price tag that XRP lost during the last bull market, its current price of $0.59 would have to rise by around 70% this month.

Featured image from Pexels, chart from TradingView

Disclaimer: The article is provided for Educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

#crypto

Trending