XRP Price Prediction Amid Coinbase-XRP BURN Trend

The XRP community has been abuzz with recent developments regarding Coinbase's involvement in burning XRP and the future price movements of the digital asset. The below insights will help provide a comprehensive understanding of the current trends and market predictions surrounding XRP.

What is the Coinbase-XRP Burn Trend?

Coinbase, one of the leading American cryptocurrency exchanges, has been subtly involved in burning XRP. According to data from block explorer XRPScan, Coinbase has been incinerating a portion of the fees it receives from every internal XRP transfer. This unusual move comes after Coinbase relisted XRP following a clarification from Judge Analisa Torres that XRP is not considered an investment contract.

How is Coinbase burning XRP?

Whenever Coinbase transfers funds internally, it burns 20 XRP as fees. This overpayment for gas fees, which were reduced to 10 XRP a few years ago, is believed to help empty the wallets making the transfer. Notably, Thomas Silkjær, Head of Analytics and Compliance at XRP Ledger Foundation, pointed out that Coinbase could reduce transaction costs further by deleting associated wallets instead of overpaying for fees.

XRP Analysis: Implications and Price Prediction

The XRP community has reacted strongly to this move, as burning XRP could be seen as a bullish effort that benefits the coin more than the trading platform itself. Recently, a transfer of 39,401,162 XRP worth $20,712,323 from an unknown wallet to Coinbase highlighted this trend. The overpayment, equivalent to about $10.468 based on the current price of $0.5234, is relatively high compared to other protocols. This highlights XRP's competitiveness as a viable payment option, particularly for smaller, retail transactions. Despite ongoing legal challenges, XRP remains one of the top crypto payment coins in the industry.

XRP Price Prediction

The price of XRP has seen a slight decline, dropping by 0.47% since the previous day. According to analysts, the trading dynamics of XRP suggest a continued period of sideways trading.

On the hourly chart, XRP is closer to its local support level, with the possibility of a breakout leading to a move towards $0.52. On a larger time frame, XRP's price is struggling to maintain levels above the $0.53 mark. If buyers fail to gain momentum, a correction towards the $0.51 area is likely.

Market Sentiment

In the midterm, it remains challenging to make long-term price projections due to the limited trading days left in the current cycle. As such, ongoing sideways trading within the range of $0.50 to $0.54 is expected. As of the latest update, XRP is trading at $0.5235.

The recent developments involving Coinbase's XRP burn strategy and the fluctuating price predictions highlight the dynamic nature of the XRP market. While Coinbase's burning of XRP fees could have positive implications for the coin's value, the price of XRP continues to hover within a narrow range, reflecting a period of market consolidation.