The price of XRP has been lagging behind in the current cryptocurrency market rally, failing to reach its peak value from January 2018. However, there is speculation that 2024 could bring about a change in this trend.
While other cryptocurrencies such as Bitcoin and Ether have seen significant gains in 2024, with returns of 58% and 68.50% respectively, XRP has only seen a modest return of 1.85%. In addition, the XRP/BTC pair has experienced a loss of 88% in the past five years.
One of the reasons for XRP’s underperformance is the shift in focus towards newly launched Bitcoin ETFs, the Bitcoin halving event, and speculation on the approval of Ethereum spot ETFs by May. Traders have been facing extreme sell-pressure at the multi-year descending trendline resistance since December 2017, making it difficult for XRP to break through.
Furthermore, XRP’s declining whale count in 2024 suggests a diminishing interest from wealthy investors. The number of addresses holding at least 100,000 XRP tokens has significantly decreased this year.
The ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple has also added to the uncertainty surrounding XRP. The case is expected to continue until May 2024.
Despite these challenges, there is a bullish technical scenario that could potentially push XRP’s price to $0.75 by June 2024. A breakout above the descending trendline resistance and the 0.236 Fibonacci retracement line could even lead to a price of $1.11. This scenario is based on a fractal pattern seen between 2014 and 2017.
On the other hand, if XRP faces a pullback from the descending trendline resistance, it could see a drop to $0.50, down 20% from its current price levels. This level is crucial as it aligns with the ascending trendline support and the 200-week exponential moving average.
It’s important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment decisions.