Amid ongoing regulatory battles and market uncertainty, investors are questioning the future of the XRP price. The SEC’s efforts to overturn the non-security ruling have heightened fear, uncertainty, and doubt (FUD), raising concerns about whether XRP could face a catastrophic drop to zero. With the cryptocurrency’s volatility and a long-standing lawsuit, many wonder if XRP will succumb to the pressure. What is the likelihood of such a scenario?
The price of XRP hit a low of $0.3834 on July 1 before surging 72% to $0.6645 on Sept. 23. The price has since retraced and is hovering around $0.54.
Is XRP Price Destined to Go to Zero?
Investors and analysts debate the possibility that XRP could drop to zero. While some believe regulatory challenges and market dynamics could drive the price down, others argue that XRP’s utility and adoption will prevent such an outcome. Some of the reasons why the XRP price could drop to zero include:
The U.S. Securities and Exchange Commission (SEC) managed to twist the case in their favor, overturning the XRP non-security ruling. This move would likely instill panic and FUD in the market, driving the asset’s price to new all-time lows.
Bitcoin creator Satoshi Nakamoto being revealed could impact the price of XRP and every other crypto as it would lead to movement of his 1.1 million BTC. Such an influx into the market would cause significant price drops as panic grips investors.
Stiff competition in the market with the likes of Hedera Hashgraph (HBAR), Algorand (ALGO), and Chainlink (LINK) is making significant strides with their rate of adoption by financial institutions—Ripple’s main clientele.
Despite these circumstances that threaten the XRP price, Ripple’s efforts to expand its use cases and partnerships could provide a buffer against a complete price collapse. Additionally, the broader cryptocurrency market trends and Bitcoin’s performance often play a crucial role in determining the direction of crypto prices.
Currently, the Ripple price is trading around $0.5399, and despite facing significant legal hurdles, it has maintained a relatively stable position in the market. The average cost for Ripple in 2024 is currently standing at $0.57. That means everyone who bought above that price is currently sitting in losses.
Ripple Price Analysis: What’s Next for XRP?
XRP has shown resilience despite the bearish sentiment. The price has been fluctuating within a tight range, with significant support levels around $0.50 and $0.64. Technical indicators suggest that the asset might experience further volatility, but a complete drop to zero seems unlikely in the near term.
Historically, the XRP price has had only two massive price jumps since its inception in late 2013. The asset bull run happened 252 days after the 2016 Bitcoin halving, pushing the asset 41,000% up. However, the second halving found XRP entangled with the SEC in a lawsuit, and the resulting bull market saw the asset rise by only 1,000% 232 days after halving. Nevertheless, this was still commendable, given the vice grip by the SEC.
XRP Price Analysis Chart
The average waiting duration for the two waiting durations following the halving before the XRP rally kicked off is 241 days. Given that it has been 175 days since the 2024 bitcoin halving, the XRP bull market could begin in 66 days, surging 21,000% to $132.
Interestingly, December 19, 2024, is 66 days from today, marking five years since the SEC v. Ripple lawsuit began. If Ripple can overcome its legal challenges and continue to secure strategic partnerships, it could see an XRP price recovery. On the other hand, if the regulatory environment worsens or if Ripple fails to deliver on its promises, the price could face downward pressure.
The post Will XRP Price Go Down to Zero? appeared first on CoinGape.
