Throughout the year, XRP has been traded stably in Bitcoin (BTC) terms. However, it has certainly fluctuated when comparing its value against the USD. While the first six weeks of the year were very positive for XRP, the second six weeks were negative.
The main question that many users and enthusiasts are now asking is what will happen with this virtual currency. It is worth taking into account that XRP depends a lot on what other cryptocurrencies do. Specifically, XRP depends on Bitcoin and how the entire market moves.
Disclaimer: all the information provided in this article should be considered for educational purposes. Never invest more than what you are able to lose. Always ask your financial advisor for information about investments in virtual currencies.
First Six Weeks
During the first part of the year, XRP has been in a bull trend. In this case, this movement highly depended on the entire crypto market. Virtual currencies have grown during this period, reaching new highs in several months. Some digital assets got very close to their all-time highs.
XRP was able to surpass $0.33 for a brief period of time. This represented a price increase of 79% in just a few weeks. Those that purchased XRP in the first days of the year were able to get a nice profit if they sold when it was close to $0.3.
Since that moment, XRP fell by 60% to $0.132. This has certainly affected the mood of XRP investors and holders. How was it possible for XRP to reach the lowest point in years? Indeed, this was a price level not seen since early 2017.
The first three months of this year were volatile for XRP traders and investors. Whether this will remain in the coming months is yet to be seen. One thing is clear if the price of XRP starts growing again, we will experience volatility. Growing again from the current levels and reaching, or even surpassing $0.3 will represent a large increase.
Second Six Weeks
The second six weeks since the beginning of this year were bearish. The market started a sell-off mode. While Bitcoin fell from $10,500 to $,3800, XRP fell, as mentioned before, from $0.33 to $0.132.
This situation took place amid financial markets plummeting all over the world. The Coronavirus outbreak has affected the economies of many countries and this has certainly harmed cryptocurrencies. Investors decided to move from risk-on assets such as digital assets to secure investment tools. This is why financial markets and digital assets fell in this period of crisis.
XRP was certainly affected by this situation. As mentioned in previous articles, Ripple will be affected as well. It is expected for banks and institutions to perform a lower number of transactions. Ripple is now working with over 300 companies around the world that have been affected by the Coronavirus crisis.
We are currently at the beginning of one of the largest crisis that affected the entire world. This is going to be massive for digital assets and they will clearly be affected. XRP could follow the current trend of the market rather than behaving alone and independently from others.
2020 XPR Price Predictions
Now we need to start thinking about what will happen in the coming months. We still have three quarters in front of us. Economies around the world are falling and millions of jobs will be lost. This could certainly reduce buying pressure in the market, pushing digital assets down even more.
Although governments are planning massive stimulus packages, they may not be able to help economies. The effort governments will do will certainly impact the crypto market. Nonetheless, the negative effects of the Coronavirus can already be seen.
This was the year of Bitcoin’s halving. This takes place every four years and it is generally a bullish event for the crypto ecosystem. Bitcoin tends to act in the first place and altcoins react to what it does. Investors should take into account which is going to be the effect of the current crisis while having a halving event.
It is not clear which is going to be playing a more important role in the coming year. Ripple is getting prepared for the recovery period after the crisis. They are currently working on a “next generation trading platform” that could be used to increase XRP usage. Although there are no details about it, we can speculate it will increase liquidity in many fiat currencies corridors.
Predicting which is going to be XRP’s price in the coming months is a difficult task. There are many variables and the crypto market is certainly volatile. However, we can have a general idea of which are going to be the events that would have the largest impact on XRP’s price.