Ripple’s XRP is the third-largest cryptocurrency by market cap. But its massive supply and a number of other factors will continue to be at the root of its struggles as we enter a new year.
The Rise and Fall of XRP
Just like all the major cryptocurrencies, XRP price enjoyed its heyday at the start of 2018, reaching as much as $3.65 a token. Like all things crypto, it wasn’t to last, and the fallout was more savage than most.
XRP has lost more than 90% of its value since its peak, and the price is currently languishing at around 18 cents. That makes it one of the worst-performing coins of 2019… although it certainly doesn’t signal the end for Chris Larsen’s creation.
According to InvestingHaven, all the current bearish momentum surrounding Ripple’s coin is actually a good sign. They dismiss it as “traction in adoption,” and say that XRP holders can “expect a bullish outcome before March 2020.”
The more bearish the sentiment around #XRP the more bullish we are because:
1) traction in ADOPTION
2) chart pattern a giant rounding formation similar to #silver in 2002
Expect a bullish outcome before March 2020.
— InvestingHaven (@InvestingHaven) December 8, 2019
Despite its staunchest supporters and analysts singing its praises on socials, though, XRP is likely to face a number of struggles next year. Here are the top three.
Probably the greatest challenge that XRP holders have to face is the continual dumping of the token, not to mention the media attention surrounding these events. With its co-founder, Jed McCaleb, constantly offloading onto the market, along with an undisclosed settlement with R3, XRP hodlers seem to be at the constant mercy of large bag holders; perhaps more so than with other crypto projects.
There are simply too many XRP tokens in circulation. This causes it to hemorrhage value through ongoing giveaways and oversupply.
On top of…