Ripple (XRP) has encountered major headwinds in the cryptocurrency market, experiencing a sharp 6.4% decline in the last 24 hours. The steep drop comes as investors grapple with increasing market volatility and uncertainty about Ripple’s potential to reach the ambitious $3 price target.
The short-term price action has been particularly challenging for XRP holders. The weekly performance shows an even more dramatic downturn, with the token recording a substantial 16.2% loss over the past seven days. This decline has forced many analysts to reassess their immediate price projections for the cryptocurrency.
However, zooming out reveals a more encouraging picture for long-term investors. XRP has demonstrated decent strength over broader timeframes, posting an impressive 237.2% gain over the past year.
The monthly chart further highlights this resilience, showing a substantial 281.9% increase over the last 30 days, while the two-week performance indicates a robust 59.8% appreciation.
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Market volatility has been a defining characteristic of XRP’s recent trading activity. The token has exhibited price swings, with volatility reaching 42.94% over the past month. Despite this turbulence, XRP has maintained positive momentum in 60% of trading sessions during this period, recording 18 green days out of 30.
XRP prediction shows a cautious outlook
Looking ahead, market forecasters present a cautious outlook. CoinCodex’s analysis suggests a potential downside risk, projecting an 18.09% decrease to $1.836574 by January 9, 2025. This bearish prediction comes despite current technical indicators signaling a bullish sentiment in the market.
The cryptocurrency market’s Fear & Greed Index currently stands at 78, indicating “Extreme Greed” among investors. This heightened level of optimism paradoxically often serves as a contrarian indicator, suggesting the market might be due for a correction.
For XRP to achieve the ambitious $3 target, several factors would need to align. These include favorable developments in Ripple’s ongoing regulatory clarity, increased institutional adoption, and broader market support.
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