The cryptocurrency market is starting to show signs of recovery. Many tokens soared in valuation recently despite the adjustment that occurred soon afterward. For Ripple, it seems as if nothing happened. However, the technical formation of XRP prices tells a different story. XRP has always been known to be a lagger, and its prices are about to shoot high. Will XRP price increase soon? We believe so, that’s why in this XRP price prediction, we’re going to show why this might happen sooner rather than later.
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What is XRP token?
The XRP ledger’s digital asset, XRP, offers financial service providers on-demand liquidity. It also serves as a bridge currency, allowing cross-border transactions to be made more easily. Transaction costs for XRP are 0.00001 XRP or 10 drops, which is less than a penny per transaction at today’s pricing. Payment companies may use XRP to reach smaller markets, receive faster payment settlements, and save money on foreign exchange. Ripple is a member of the XRP ledger, which is open-source and managed by a worldwide and independent community.
XRP Price is Consolidating – what’s happening?
XRP prices crashed heavily with the crypto market since November 2021. This 70% drop in valuation definitely took a toll on XRP investors, who switched during this crash to stablecoins. No wonder why currently, there are 3 stablecoins among the top cryptocurrencies by market cap (USDT, USDS, and BUSD). For XRP however, things are calming down. Its prices are consolidating around the $0.40 price mark, which represents a very strong support area for XRP.
Now that the market is starting to move higher, XRP should also move upwards. However, it might take them some time to make the move as XRP is known to be a lagger in the crypto market. Back in 2017, when the crypto market jumped to make higher highs, it took XRP several weeks to follow.
XRP Price Prediction – Will XRP price increase soon?
When prices for any asset consolidate, they usually continue the trend or retrace in the opposite direction. Professional traders can identify strategic areas to determine if a trend is continuing or reversing. In the case of cryptocurrencies, the majority have achieved their respective support zones. Although the negative trend may continue, consolidations are beneficial for the following reasons:
- They try to end the downward “snowball effect”
- Proves equilibrium in important areas
- They confirm key support prices
- They allow traders to enter the market again
XRPis currently heading towards the upper side of the consolidation channel, to $0.44. From there, we might see a retracement if the crypto market in general is still consolidating. On the other hand, if the crypto market manages to recover, XRP prices can break this $0.44 higher, targeting the psychological price of $0.50.
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