Although the XRP price is down by over 13% year-to-date (YTD), the crypto asset can still finish the month with a 20% growth if history repeats itself.
Like most crypto assets, XRP has been on a major downturn, shredding most of its 2023 gains. Despite starting the year at around $0.615, the price of XRP has plummeted 13.5% year-to-date (YTD).
Bears Take Charge of the XRP Market
In the hours leading up to press time, XRP changed hands at $0.537, down 4% on the daily chart and 8.24% in the past week.
Similarly, XRP trading volume has also plummeted heavily over the past 24 hours, with a decline of 15.9% to $595,840,104 ($595.84 million). The current performance of XRP suggests that the bears are in charge of the market.
This Historical Trend Could Help XRP Recover
At the moment, the catalyst for XRP’s growth lies in a significant historical trend. It bears mentioning that this trend, first observed in 2020, has helped the coin close the first month of every year in green, except in 2022.
For context, despite the turbulence in the crypto market in January 2020, XRP still ended the month with a 26% price increase. The pattern also repeated itself a year later, in January 2021. At the time, XRP went parabolic and closed the month with a remarkable 121% price surge.
However, XRP could not repeat the same feat the following year, leading to a 25.6% price dip in January 2022. XRP recovered in January 2023 as the crypto asset finished the month with a 20.1% price gain.
Even though XRP is down 13.5% YTD, the sixth-largest cryptocurrency can still end the month with an increase of 20% and above if history repeats itself.
SEC v. Ripple Case to Play Major Role in XRP Recovery
In the meantime, the fate of XRP still lies in the outcome of the SEC v. Ripple lawsuit. This multi-year legal tussle has been the major factor influencing the price of XRP. In this case, a positive development usually leads to a price hike, while an adverse event causes a price dip.
The parties are awaiting the court’s verdict on SEC’s motion to compel Ripple to hand over two documents and respond to one interrogatory.
While the legal battle is expected to be finalized by summer 2024, the SEC could appeal the summary judgment decision in the Second Circuit.
The regulator has already criticized the verdict and attempted to file an immediate appeal last year. Although its request was denied, the SEC could launch another attempt once the final judgment is issued.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
