XRP, a cryptocurrency that has been lagging behind in the current market rally, is facing the question of whether things will be different in 2024. Despite the overall positive sentiment in the crypto market, XRP has only seen a 1.85% increase in price returns, while Bitcoin and Ether have gained 58% and 68.50% respectively during the same period. In addition, the XRP/BTC pair has experienced an 88% loss over the past five years.
The decline in XRP’s price can be attributed to various factors. Traders have been focusing on newly launched Bitcoin ETFs, the Bitcoin halving event, and the potential approval of Ethereum spot ETFs by May. Technically, XRP has been facing significant selling pressure at its multi-year descending trendline resistance since December 2017, making it difficult for traders to break above this trendline.
Furthermore, XRP’s slump in 2024 aligns with a decrease in the number of wealthy investors holding large amounts of XRP. This suggests a diminishing interest in the cryptocurrency among these investors. The ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple has also added to the uncertainty surrounding XRP.
However, there is still hope for a bullish scenario for XRP. The price could see a 15% increase to around $0.75 by June 2024 if it breaks above the descending trendline resistance and the 0.236 Fibonacci retracement line. A decisive breakout could even push the price as high as $1.11, following a fractal pattern observed from 2014 to 2017.
On the other hand, a potential pullback from the descending trendline resistance could lead to a drop in XRP’s price to $0.50, representing a 20% decrease from current levels. This level is crucial as it aligns with the 200-week exponential moving average and a multi-month ascending trendline support.
It’s important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and analysis before making any investment decisions.