XRP Price Recovery: Will XRP Rank Under Top 5 in 2024?
XRP has been part of the crypto industry for more than ten years, sitting in the 7th position under the top categories for its market capitalization. Though XRP has maintained such a high position, its reputation in the market has declined to an all-time loser for its six-year-long crypto winter. With every new prediction and analyst claiming upcoming surges, XRP price has not moved any higher from its average of $0.5, except for a few exceptions.
The condition has worsened these days as the XRP price has declined to $0.47 under the declining crypto market behavior. So, will the XRP recover? Can it achieve a rank under the top 5 list this year? Let us discuss this in this blog.
XRP Price Journey & Challenges Affecting It
Ripple, the blockchain network, is behind the launch of the XRP, which has become the limiting factor and the gift for the token. XRP was launched in 2013, and for the first four years, its value struggled to reach deserving heights. However, with development and partnership, Ripple pushed the demand for the XRP token. As a result, XRP price surged to its all-time high of $3.31 on January 4, 2018, which has been the highest mark till today.
It is because, in the same years, XRP price went into a complete downtrend, declining to as low as $0.30, continuing the same for the next three years. In 2020, the decline took another dive, sinking to the bottom at $0.11, the lowest point since the ATH till now. It was because of the COVID-19 outbreak, which slowed down the entire planet.
However, the sad days just did not end there as the Securities Exchange Commission (SEC) filed a lawsuit against Ripple in December 2020, calling the XRP a Security. Being classified as a security is intense, which puts it under various limitations compared to the cryptos considered commodities.
This lawsuit led to the delisting of the XRP from various exchanges. The case is still in process, becoming the main factor affecting the XRP price. However, for a limited period, the price rose again and reached a high of $2.00 in April 2021, but by June 2022, the price was down to $0.29. This was the last satisfactory rally, with a few minor surges in between.
What’s Restricting The Comeback of XRP?
With the neverending Ripple vs SEC legal battle, XRP has not had a single opportunity to break out of the years-long downtrend. Though there is an improved situation for the network, the XRP price is still struggling.
Additionally, XRP competitors are in the top 5 categories, which include Bitcoin, Ethereum, Solana, and BNB. These blockchains have far better features like Decentralized Applications and Smart Contracts, which create a high demand for their token. Over the years, they have built the image as profitable assets, sticking to their positions of top cryptos.
Apart from the competition with the old networks, so many layer2 blockchains and new cryptos have been introduced in the market, which is quite challenging for XRP to catch up with.
Will XRP Price Recover To Push It In Top 5 In 2024?
One of the main restraints is Ripple’s legal battle. If the case gets over or sees satisfactory results, the XRP price can see a better light in the market. However, that seems to be less likely for now.
The second important factor to consider is the market conditions, which can build or destroy a cryptocurrency. As of now, the crypto market is in a neutral state, which has restricted its performance. Otherwise, during the March’s rally, XRP price did rise to as high as $0.7. If similar or more suitable conditions were to come, XRP might achieve $0.7 or even $1 this year.
With the possibility of XRP achieving the $1 mark, its market cap will grow to 55,688,327,582 because of its circulating supply of 55,688,327,582 XRP tokens. This will be twice the current market cap of $26,398,603,379. With that, XRP could beat the USDC, the sixth-biggest cryptocurrency.
However, to enter the top 5, its market cap has to reach $65 Billion, which is the market cap of Solana (SOL), putting it in the 5th spot. To do so, the XRP price has to rise above $1.16, or even higher, as Solana is also in its lower days, where the market cap is down.
For now, the XRP price to attain above the $1 mark seems unrealistic. Many analysts have predicted a surge between $0.7 & $0.9 for 2024. However, an early bull run might make that happen, but that is not due till next year.
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