Trending cryptocurrency XRP is grappling with price consolidation as it hovers around the $2.2 mark. Investors had anticipated a rally toward $3, but instead, the coin’s decline mirrors a broader downturn in the crypto market as the year concludes.
Reasons Behind XRP’s Decline
The recent XRP price drop is tied to both macroeconomic developments and regulatory uncertainty. A significant factor is the U.S. Federal Reserve’s decision to implement a 25 basis point rate cut last week, followed by Chairman Jerome Powell’s cautious outlook for 2025. Powell hinted at fewer rate cuts next year, dampening investor sentiment and triggering sell-offs across riskier assets, including cryptocurrencies
Additionally, regulatory concerns weigh heavily on XRP’s price movement. The ongoing Ripple-SEC lawsuit adds to the uncertainty, with the SEC’s appeal-related opening brief expected before the January 15 deadline. A favorable outcome for Ripple could provide a significant boost to XRP’s price trajectory.
Analysts Remain Optimistic
Despite bearish trends, analysts project a positive future for XRP. Crypto analyst Ali Martinez predicts that maintaining support above $2.2 could lead to a rally to $2.7. Similarly, Egrag Crypto forecasts XRP closing the year at $4.3 and potentially surging to $13–$27 by January 2025.
Current Performance
At the time of reporting, XRP traded at $2.20, up 0.68% in the last 24 hours and showing a remarkable 53.49% increase over the past 30 days.
Conclusion
While XRP faces short-term challenges due to market and regulatory factors, long-term optimism remains strong. The coin’s ability to hold key support levels and achieve favorable legal outcomes will be pivotal in shaping its performance in the coming months.
