The recent downturn in the cryptocurrency market has seen Bitcoin (BTC) fall to around $6,400 on December 18, triggering significant declines across many altcoins. Among them, Ripple’s XRP experienced a sharp drop of 20%, hitting a low of $0.178. At the time of writing, XRP is trading near $0.19, marking its lowest price point in two years.
Despite this bleak performance, Ripple, the blockchain payment company behind XRP, recently announced a successful funding round of $200 million. The company claims that 2019 has been its strongest year of growth so far. However, the crucial question remains: does this severe price drop represent a unique buying opportunity, or is XRP poised to continue losing its market standing?
XRP Reaches Lowest USD Price in 26 Months
Unfortunately, XRP’s decline that began in early December has not reversed. Instead, the downtrend has persisted.
After retesting support near the $0.30 level, XRP’s price fell further, breaking below the critical support zone between $0.17 and $0.20. Market data indicates that this is the lowest price level since October 2017. This represents a full retracement from the volatile price action in early 2018 when XRP reached an all-time high near $3. From that peak, XRP has now declined by approximately 95%.
Market sentiment around XRP has turned overwhelmingly bearish. While a 95% decline is painful for any digital asset, some analysts warn that the situation could worsen.
Analyst Perspectives on XRP’s Future
Well-known cryptocurrency trader and commentator Jacob Canfield has expressed concern about XRP’s technical outlook. He mentioned that over the past few years, he has advised friends and family against investing in XRP. Canfield added that he might consider suggesting a long position only if XRP falls further into the $0.10 to $0.15 range—representing an additional 25% to 50% decline from current levels.
Other analysts point to fundamental factors behind the decline. Joe DiPasquale, CEO of crypto hedge fund BitBull Capital, noted in an interview that the accelerating sell-off may be linked to news that Ripple’s partner, MoneyGram, and its CEO Alex Holmes do not hold XRP. The market appears to be reacting to this revelation.
DiPasquale further explained, “XRP has historically been very sensitive to news related to banking and remittance service partnerships… We expect the price to decline further due to this news.”
Understanding Ripple’s Ecosystem and XRP’s Role
It is important to distinguish between Ripple the company and XRP the digital asset. Ripple focuses on providing blockchain-based solutions for cross-border payments and has secured numerous partnerships with financial institutions. XRP is used within Ripple’s products to facilitate liquidity and faster transactions.
Despite Ripple’s business developments, the price of XRP has struggled. This disconnect highlights the complex relationship between corporate success and token valuation in the crypto space.
Potential Scenarios for XRP Recovery
For a sustained recovery, XRP would need positive catalysts such as increased adoption by financial institutions, regulatory clarity, or a broader market recovery. Until then, traders and investors are advised to exercise caution.
Technical analysts are watching key support levels. A break below the current range could lead to further declines, while a hold above may indicate consolidation or a potential rebound.
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Frequently Asked Questions
What caused XRP to drop 95% from its all-time high?
The decline is due to a combination of factors, including overall market bearishness, concerns over its use case, and reactions to specific news such as partnership disclosures.
Is Ripple the company affected by the drop in XRP price?
Ripple the company has raised significant funding and claims strong growth. However, the price of XRP is influenced by market dynamics and may not directly reflect the company’s operational performance.
Should I consider buying XRP at current prices?
Investment decisions should be based on individual risk tolerance and market research. Some analysts believe further declines are possible, while others see long-term value.
What is the difference between Ripple and XRP?
Ripple is a fintech company that develops payment solutions, while XRP is the digital asset used within some of Ripple’s products to enable fast and low-cost transactions.
Can XRP recover to its previous highs?
Recovery would require widespread adoption, positive regulatory developments, and a bullish market cycle. There are no guarantees in the highly volatile cryptocurrency market.
Where can I stay updated on XRP price movements?
Reputable cryptocurrency market data platforms provide real-time price information, charts, and relevant news updates.