Despite a bearish start to 2024, with prices plummeting 14.62% over the past 30 days, a glimmer of hope persists for XRP. A historical trend suggests XRP could still finish January with a 20% increase, offering a potential reversal of fortune.
However, XRP’s fate remains tied to the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), casting a shadow of uncertainty over its long-term trajectory.
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The recent months have seen XRP endure a significant downturn, shedding much of its 2023 gains. XRP was among the first cryptocurrencies to start surging in late 2022, starting in the early days of November. However, it could not maintain its momentum and began to fall soon after.
XRP’s decline gave way to other cryptocurrencies, as Solana surpassed it in late December. XRP is currently ranked #6 by market cap and is down 4.33%, trading at $0.5296. However, its trading volume is up 34.40% over the last 24 hours, currently at $808.18 million.
This surge in trading volume is an indication of an increase in investor interest in the digital asset. It’s likely influenced by investors who see the decline as a buying opportunity.
Hope from a Historical Pattern
Amidst the bearish pressure, a crucial historical trend offers a potential light at the end of the tunnel. Since 2020, except for 2022, data from Cryptorank shows that XRP has consistently closed the first month of each year in the green.
This pattern signifies a noteworthy January effect, with notable instances including a 26% surge in 2020 and a remarkable 121% leap in 2021. While last year brought a 25.6% dip, the potential for a 20% or higher rebound this January should not be entirely discounted.
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XRP’s Fate
Ultimately, the fate of XRP hinges on the resolution of the ongoing lawsuit with the SEC. This legal battle has cast a long shadow over the cryptocurrency, with every development significantly impacting its price.
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Positive rulings have triggered upticks, while adverse decisions have led to immediate dips. The SEC recently escalated its demands after prolonged silence and Ripple has also responded promptly. Things might be picking up again soon between both parties.
Currently, both parties await the court’s verdict on the SEC’s motion to compel Ripple to hand over specific documents. Although the lawsuit is expected to end in April, there is a chance that the SEC might appeal the ruling to the Second Circuit.
In the final days of January, we will see if XRP can surge and maintain its historical pattern or fall even more.
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