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On January 1, 2025, Ripple will issue 1 billion XRP tokens, which could increase selling pressure and create price volatility.
The US Federal Reserve has lowered its expectations for interest rate cuts, creating uncertainty and impacting risk assets like XRP.
If XRP manages to break the resistance levels, it could see a major recovery, with the possibility of reaching a new all-time high.
XRP has seen a significant decline in recent weeks, losing around 30% of its recent gains and struggling to stay above the $2 mark. This decline has raised concerns among investors, who are wondering whether the cryptocurrency’s price will continue to decline in the near future. The main reason behind this weakness appears to be a combination of internal and external factors that are negatively impacting its performance.
Unlocking Codes and Macroeconomic Pressures
One of the major factors affecting the price of XRP is the upcoming monthly token unlock scheduled for January 1, 2025. On this date, Ripple will issue 1 billion XRP tokens as part of its strategy to fund operations. In previous events of this type, the sale of large amounts of tokens led to selling pressure, which increased uncertainty about price stability.
Additionally, broader macroeconomic conditions are also impacting XRP’s behavior. The US Federal Reserve recently adjusted its monetary policy, lowering its expectations for interest rate cuts, creating a more cautious outlook for 2025. This shift has increased overall uncertainty in financial markets, particularly affecting risky assets like XRP.
XRP Outlook
Although XRP is still struggling to hold the key support level at $2, analysts suggest that it could enter a consolidation phase similar to the one observed in early 2024, which ended with a major rally in November. If the cryptocurrency manages to break the $2.73 resistance, there is a possibility of a rally towards $3.00 and even a chance to reach a new all-time high above $3.31.