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XRP, the native token of global payment solutions company Ripple Labs, is one of the best-performing cryptocurrencies of 2023. The token opened the year at $0.35 and ended at $0.61, thanks to its parent company’s partial win against the US Securities and Exchange Commission in July.
This year, XRP’s year-to-date stalled despite the positive developments in the broader crypto market. How far can the price go in 2024? In this prediction, TU experts will answer.
XRP price prediction in 2024 by Traders Union
Traders Union’s XRP price prediction for 2024 has kept its sight at a modest gain. According to the finance portal’s experts, the coin will be traded between $0.5497 to $0.6719, far from the $1 bullish forecast given by other experts for this year—Traders Union prediction offers a more conservative outlook, providing traders with realistic expectations for XRP's performance in 2024.
XRP is currently trading at $0.55, down 12% against USDT year-to-date. It has underperformed by 6% against Bitcoin (BTC) and 17% against Ethereum (ETH) in the past 30 days as the two crypto majors continue to receive attention from the market’s enthusiasm towards the first spot cryptocurrency exchange-traded funds.
What will influence XRP price this year?
Several considerations will influence XRP price this year and investors are advised to keep themselves informed of these developments.
According to Traders Union experts, some of the factors to watch out for are the latest movements in the broader crypto market, the Federal Reserve’s monetary cycle, regulatory issues, and the possibility of an initial public offering.
- Latest developments in the broader crypto market. The market’s attention has been fixated on the approval of a spot Bitcoin and Ethereum ETF since the start of the year. This has overshadowed tokens like XRP which currently have none of such applications in place.
- Federal Reserve’s monetary cycle. Goldman Sachs experts predict that the Federal Reserve will cut rates five times this year. In general, lower interest rates increase appetite for riskier assets like crypto.
- Regulatory issues. More clarity is expected to come in the Ripple Labs vs. US SEC lawsuit this year after the company’s partial win in July which deemed XRP sold on public exchanges did not violate federal securities law.
- Possibility of an initial public offering. Ripple Labs has been exploring going public for years. It has recently disclosed exploring markets outside of the United States with clearer rules and regulations for digital assets for an IPO.
Will XRP reach $10?
Despite the long list of challenges coming ahead of XRP price, Traders Union experts noted that the price reaching $10 remains a good possibility. In fact, analysts said 2033 will be a good timeline to turn this possibility into reality, given the improving retail and institutional acceptance of cryptocurrency.
A recent prediction given by ChatGPT affirms this prediction, although the AI predicts this will happen sometime in 2024.
Realistically speaking, XRP hitting $10 soon may be a far-fetched prediction, given that the all-time high price of $3.29 has not come back in the charts since January 2018. Still, traders can leverage a pump-and-dump strategy and temporarily inflate the price for this purpose.
Pump and dump strategy
A pump and dump strategy applies when a group of traders temporarily starts a hype around a token, factual or not, to send the price skyrocketing.
With the Fear of Missing Out or FOMO in place, spectators will begin to buy into the hype which will cause price inflation known as “pumping.”
Once the pump-and-dump strategy group achieves its desired price level, a sell-off will start to take place and the massive exits will cause price deflation, commonly referred to as “dumping.”
This strategy works only with a strong collective power – a group chooses an asset, normally a low-cap token that is easy to hype up and buys in low quantity but in consistent intervals. The gradual but consistent price increase is what gets traders attracted to the asset as this appears like a real gain in the early days of the strategy.
Pump and dump groups on Telegram
Here are the most popular crypto pump and dump groups on Telegram in 2024, according to a Traders Union article:
- Sharks in pump - this group holds over 57,000 subscribers and provides weekly pump signals from top crypto exchanges such as Binance and Huobi
- Mega pump group - the group boasts 50,000 Telegram subscribers with a trusted support group accessible to members free of charge
- Big pump signal - is one of the largest pump and dump Telegram groups with over 70,000 members to date. It also holds a massive Discord community with over 200,000 members, regularly coordinating with Binance for pump signals
- Big pump group - the group has 30,000 members, and offers an attractive affiliate program where members receive exclusive pump and dump signals earlier than regular members
- Verified crypto traders - one of the best interactive Telegram groups for pumping and dumping tokens, headed by experienced users with extensive years of exposure in the trading environment. The founder uses complex mathematics and patterns to deliver price predictions.
A fair warning on pump and dump strategies
Despite their collective power, historical data suggest that people who participate in pump-and-dump strategies lose their money most of the time. Many join the hype when the price is at its peak and fail to sell on time, leading to a massive loss.
The best strategy remains one that is backed by good old technical and fundamental analysis – the fear of missing out is statistically proven to cause traders to lose their investments the majority of the time. This article was written by Ivan Andriyenko, a seasoned financial expert and analyst at Traders Union.