Ripple’s Correction and Potential for Growth in 2024
In January, Ripple experienced a significant correction after enjoying support at the $0.62 level for two months. During this time, XRP formed a falling wedge pattern, which suggests a potential reversal to a bullish trend. Despite the correction, Ripple’s news remained neutral to positive, with the announcement of global partnerships and the opening of a new headquarters in San Francisco. However, the decline in Bitcoin’s price may have influenced altcoin prices.
If Bitcoin rallies in 2024, there are several signs that suggest XRP could perform even better this year.
SEC Lawsuit On Its Last Leg
The Securities and Exchange Commission (SEC) has faced setbacks in its lawsuit against Ripple Labs. The court ruled that XRP tokens sold on secondary markets are not securities, and the SEC lost its appeal of this decision. Additionally, the SEC removed Ripple’s founder and CEO from the lawsuit, leaving only Ripple Labs as the defendant. A final settlement in favor of Ripple could be a positive catalyst for XRP’s price.
XRP Global Partnerships Growing
Ripple Labs has secured key partnerships in the United Kingdom, Asia, and Africa. These partnerships expand RippleNet’s business and could increase demand for XRP tokens. The project’s plans for global expansion in 2024 further contribute to the potential growth of XRP.
Supply Design And XRP Price
Ripple has a hard supply cap of 10 billion XRP tokens, similar to Bitcoin. This scarcity supports the price of XRP. Additionally, there is a burn mechanism that destroys a small fraction of XRP with each transaction, adding deflationary support to its price.
XRP Price Does Not Reflect XRPL’s Value
The XRP Ledger has DeFi and smart contract capabilities, but it is still underdeveloped compared to its competitors. As developers continue to add and grow decentralized applications on the XRP Ledger, there is significant upside potential for XRP’s price.
XRP Average Transaction Fee: $0.0014
XRP offers low transaction fees, making it attractive for cross-border payments. This advantage could attract cryptocurrency investors in 2024, as seen with the rise of Solana’s price due to its low fees.
Ripple IPO Could Happen in 2024
While not certain, there is a possibility of a Ripple IPO in 2024 once the SEC lawsuit is settled. An IPO could positively impact XRP’s price, although Ripple has expressed concerns about the regulatory environment in the US.
Bitcoin 4-Year Market Cycle
The upcoming Bitcoin halving in April 2024 could lead to a bull run across the cryptocurrency sector. Historically, Bitcoin halvings have preceded significant price increases for cryptocurrencies. The coincidence of the halving and the SEC lawsuit going to trial could potentially fuel a rise in XRP’s price later this year.
Hot Take: Potential for XRP Growth in 2024
Despite a correction in January, there are several factors that suggest XRP could experience growth in 2024. The nearing conclusion of the SEC lawsuit, growing global partnerships, supply scarcity, undervaluation of XRPL’s capabilities, low transaction fees, potential IPO plans, and the upcoming Bitcoin halving all contribute to a positive outlook for XRP’s price. While no investment can be guaranteed, these factors create a favorable environment for potential growth in the coming year.
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