XRP, the top option for cross-border payments in the cryptocurrency market, has not had an easy road. The 2017 bull run sent XRP to its all-time high of $3.84 in January 2018. However, this surge proved fleeting. The digital token has spent most of the subsequent years struggling to reclaim its past glory.
A glimmer of hope arrived in 2021, fueled by another market-wide bull run. XRP reached $1.96 in April and stayed above the significant psychological barrier of $1 for most of the year, albeit with significant volatility.
Read Also: Projected Timelines For XRP Price To Hit $1.96 and New All-Time High
However, the digital asset fell below $1 and has failed to reclaim that level. XRP tried to reclaim this level in July 2023 when XRP surged to $0.93 following a favorable ruling in the legal battle with the U.S. Securities and Exchange Commission (SEC). This poor performance has left many wondering whether the digital token can ever reclaim the $1 mark.
The XRP Lawsuit and Its Impact
This year has presented a stark contrast. While Bitcoin reached new all-time highs, XRP has remained on the sidelines of the market rally. Unlike most major cryptocurrencies, the digital asset designed for cross-border remittances has grossly underperformed, consistently consolidating around $0.5.
A key factor often cited for this underperformance is the ongoing legal battle between Ripple and the SEC. This legal dispute has undoubtedly cast a shadow over XRP’s price. However, a compelling argument exists that a significant price surge could occur once the lawsuit ends.
Despite the ongoing legal pressure, the digital token maintains a loyal following, with CoinCarp indicating that nearly 5 million unique addresses hold at least some XRP.
However, a note of caution is necessary. XRP ownership exhibits a degree of centralization. The top 10 holders control a significant portion, approximately 42.48%, with the top 100 holding a combined 73%. This implies that the remaining 27% is dispersed amongst the 5 million addresses.
Additionally, data suggests that recent trading activity by the top 47 holders has been predominantly sales-oriented, although a more balanced pattern has emerged among the remaining holders within the top 100.
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Read Also: Top Crypto Analyst Updates Outlook on XRP. Here’s His Price Target
Major Factors to Push XRP Beyond $1 Mark
Despite these concerns, recent developments suggest the legal battle might be nearing its final chapter. This and broader market trends, could provide clues regarding XRP’s potential price trajectory.
Michaël van de Poppe (CryptoMichNL), a renowned crypto analyst, recently expressed his belief that altcoins have completed their corrective phase and are poised for continued growth. He further suggests that this uptrend could experience a significant acceleration sometime in the latter half of 2024.
Michaël van de Poppe noted
“It’s very likely that Altcoins are continuing their upwards grind from here and that we’ve finished the correction. Slow upwards grind, slowly but surely accelerating towards a vertical move in Q3/Q4.”
These aforementioned factors could help XRP reclaim the coveted $1 price level.
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