The price of the Ripple could face major issues in 2020. Its massive supply and several other factors will continue to be the source of its struggles as we enter a new year.
19 December, 2019 | AtoZ Markets – Ripple’s XRP is the third-largest crypto by market capitalization. Ripple price drops below 18 cents on Wednesday as the crypto market sell-off continues. The entire market has now lost about $ 200 billion in the second half of 2019.
Investors lose confidence in the context of continuous XRP dumping. It is at its lowest level in 2 years and falling (-16% in 48 hours). It is difficult to see any signs of bullish support right now. Despite its most fervent supporters and analysts are praising on social activities, the XRP will likely face several struggles next year.
Ripple Price is Likely to Encounter Several Major Issues in 2020
Like all major cryptocurrencies, the price of XRP peaked in early 2018, reaching up to $ 3.65 per token. Like other crypto, it did not last and the fallout was wilder than most.
The XRP has lost more than 90% of its value since its peak, and the price is currently languishing at around 18 cents. This makes it one of the worst-performing crypto of 2019, although it certainly doesn’t mark the end of Chris Larsen’s creation.
All of the current bearish momentum surrounding Ripple’s coin is a good sign. They dismiss it as a “pull-in adoption” and say that XRP holders can “expect a bullish result before March 2020”.
If XRP is to prove its worth to the world, it will have to do soon. 2020 already promises to be the year of the race for sovereign digital currencies and stablecoins issued by banks.
With increasing competition from China to the Marshall Islands, more and more countries are interested in launching their digital currency.
The companies like Facebook and banks like JPMorgan all are embarking on the adventure. XRP will have to fight to stay relevant as a cross-border payment solution in 2020.
Moreover, according to AtoZMarkets’ Senior Market Analyst, Sanmi Adeagbo: ”The recent bearish breakout means that Ripple will most likely slump further to 12-13 cents. Technically, Bitcoin should dip to $4,500-5,000 zone before the 2020 halving which many now see as a bullish trigger. With such a dominance BTC has, it is expected to drag the entire market down and hence Ripple hitting the $12 bearish target is very much likely”
XRP Token Dumping
The biggest challenge that XRP holders are likely to face is the continuous token dumping. With its co-founder, Jed McCaleb, which continues to unload on the market, as well as an undisclosed agreement with R3. XRP holders always seem at the mercy of large bag holders, perhaps more than with other crypto projects.
There are too many XRP tokens in circulation. On top of that, there are still over 200 additional monthly instalments of over 220 million XRP tokens. That will be released by Ripple, just waiting to be dumped.
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