In a context of a general surge in the crypto market, XRP, Ripple’s native crypto, seems to be facing a particular situation. While several cryptos have managed to hit their historic price record again, XRP is struggling to join the trend. The asset raises concerns linked to its loss of valuation over the past 6 years.
Ripple’s native crypto has lost 88% of its 2018 price peak!
The performance of Ripple’s native crypto worries analysts and users. Indeed, while the market is experiencing a certain resurgence, particularly among major cryptos, Ripple’s XRP, a top 10 asset, is lagging behind.
The asset’s recent performance has not been the most glorious, with XRP having eroded by 2.20% in 24 hours. The most worrying thing is that unlike cryptos like bitcoin (BTC) and ether (ETH), the valuation of XRP has fundamentally melted in recent years.
The fact is that 58% and 68.50%, during the same period.
Figures show that the value of the XRP/BTC trading pair has fallen by 88% over the last 6 years. In other words, a user who invested in this pair 5 years ago would have lost 88% of their initial investment. This is a very significant drop and indicates a very poor performance of XRP compared to bitcoin over this period.
The causes of this collapse of XRP
According to analysts, several factors can explain the decline in the valuation of XRP over the last 6 years. Among these, we particularly mention the diversion of investors towards the recently launched spot Bitcoin ETFs.
There is also the anticipation of the bitcoin halving expected in a few days and speculation around the approval of an Ethereum Spot ETF by May 2024. But the current legal uncertainties linked to the lawsuit against the SEC are there for something.
Furthermore, Ripple’s native crypto is technically facing significant selling pressure since December 2017. XRP faces resistance from the multi-year descending trendline. Despite their attempts, investors failed to achieve a decisive breakthrough beyond this critical barrier.
However, a decisive breakthrough above this resistance could propel XRP towards $1.11. A performance that would reflect a pattern of price movement observed between 2014 and 2017. If history repeats itself, XRP could then reach new highs above $3.55 in the months to come. Currently, the price of XRP is around $0.60.
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