Volatility was expected to increase soon, and without waiting for the 10-day period, BTC turned its direction upwards and tested its 2024 peak. Although it did not surpass the peak of January, at the time of writing, it continued to maintain $48,000, indicating a positive outlook. At the time of writing, BTC was finding buyers at $48,339. XRP Coin, on the other hand, continues to linger at $0.52.
What Will Happen to XRP Coin?
We will look at the technical outlook for the short-term view in the second part. However, the medium and long-term outlook is a bit more complex. Firstly, Ripple is collaborating with many central banks, banks, and institutions for blockchain-based payment services. This is extremely positive and reflects Ripple’s potential to transform into a larger brand in the future.
However, the connection between XRP Coin and Ripple was somewhat reduced due to threats leading up to the lawsuit at the end of 2020. This situation could make XRP Coin less attractive with Ripple’s public offering. After the conclusion of the lawsuit, Ripple management plans to reapply for an IPO. The company’s shares will be seen as a natural XRP Coin ETF but will not require holding an XRP Coin reserve, posing a long-term threat to the price.
On the other hand, the summary judgment victory in July 2023 could be reversed in the coming months depending on the outcome of collective appeals. Moreover, we will likely see a period when bears will buy this risk and the demand for XRP Coin may weaken. This is among the significant medium-term problems.
Finally, there is another problem threatening the price in the medium and long term. This is the rapidly increasing circulating supply, which everyone rightly criticizes. Even today, for XRP Coin to reach its 2021 peak, the market value would need to double from that peak.
Commentary on XRP Coin Price Chart
The price is still below the support line of the parallel channel and a strong bounce has not yet been initiated from $0.5. If the XRP Coin bulls cannot move the price above the $0.58 baseline, the continuation of a negative outlook seems more likely. Fundamentally, there is also nothing like ETFs or lawsuits to positively affect the price.
If the decline accelerates, sales may continue down to $0.487 and $0.42.