The cryptocurrency market has been on a downtrend ever since November 2021. Most tokens reached their all-time highs before crashing back to their respective support prices. However, Ripple price is one of those cryptocurrencies that never managed to reach its previous all-time high of $2.7. Today, prices are lingering around a very crucial price. If things go south, XRP prices might collapse further. What will happen to the XRP price? Will XRP crash to 10 cents? Let’s assess in this XRP price prediction article!
What is Ripple XRP?
RippleNet is a worldwide payment platform created by Ripple, a FinTech business located in San Francisco. They essentially built the XRP ledger blockchain, as well as the XRP native token. In reality, Ripple was founded in 2004, long before the term “cryptocurrency” was used. RipplePay was founded at the time as they attempted to create an Internet of Value and their own money. The software was centralized and the network was tiny. That’s why, in late 2012, RipplePay joined with another firm named Open Coin, forming what is currently known as Ripple.
XRP is the digital asset on the XRP ledger, which provides on-demand liquidity for financial service providers. It also acts as a bridge currency to facilitate cross-border transactions. XRP’s transaction fees are 0.00001 XRP or 10 drops, which at today’s price is less than 1 cent per transaction. With XRP, payment providers can reach smaller markets, enjoy faster payment settlements, and reduce foreign exchange costs. The XRP ledger is open-source and maintained by a global and independent community, and Ripple is an active member.
Why did XRP Crash in 2022?
XRP like other cryptocurrencies crashed. The reasons are very diverse and are not related to Ripple company. In fact, there are many other fundamental effects that caused this downfall. Some of those reasons are:
- Cryptocurrencies and stock market correlation
- War on Ukraine
- The failed ecosystem of several crypto projects (Yuga Labs, Terra)
- Crypto market overbought, needing an adjustment
- Tougher regulations
The above reasons are a small sample of what happened since November 2021. All cryptocurrencies crashed by an average of more than 50%. XRP prices specifically fell from a high of $0.90 and reached the current price of $0.38, or a fall of -58%.
XRP Price Prediction – Will XRP crash to 10 cents?
There is no surprise that XRP prices are currently not looking good. In fact, the current price is consolidating around a very important price area delimited between $0.38 and $0.40. Failure to rebound higher in the next few days should bring XRP prices down to the psychological price of $0.30.
If this new level is also broken, the next supports would be the psychological prices of $0.20 and $0.10.
