TL;DR
On January 1, 2025, Ripple will release 1 billion XRP tokens, which could increase selling pressure and create volatility in the price.
The U.S. Federal Reserve has lowered its expectations for rate cuts, creating uncertainty and affecting risk assets like XRP.
If XRP manages to break resistance levels, it could experience a significant recovery, potentially aiming for a new all-time high.
XRP has seen a significant decline in recent weeks, losing almost 30% of its recent gains and struggling to hold above the $2 mark. This drop has raised concerns among investors, who wonder if the cryptocurrency’s price will continue to fall in the near future. The main cause of this weakness seems to be a combination of internal and external factors that are negatively affecting its performance.
Token Unlocking and Macroeconomic Pressures
One of the main factors impacting XRP’s price is the upcoming monthly token unlock scheduled for January 1, 2025. On this date, Ripple will release 1 billion XRP tokens as part of its operational funding strategy. In past events of this nature, the sale of large amounts of tokens has led to selling pressure, which increases uncertainty about the price stability.
In addition, broader macroeconomic conditions are also influencing XRP’s behavior. The U.S. Federal Reserve recently adjusted its monetary policy, lowering its expectations for rate cuts, creating a more cautious outlook for 2025. This shift has increased overall uncertainty in financial markets, particularly affecting risk assets like XRP.
Future Outlook for XRP
Although XRP is still struggling to hold its key support level at $2, analysts suggest that it may be entering a consolidation phase similar to the one observed in early 2024, which ended with a significant recovery in November. If the cryptocurrency can break the $2.73 resistance, there is a possibility of a rally toward $3.00 and even a chance to reach a new all-time high above $3.31.
