The Bitcoin Halving event is around the corner and market watchers are curious how XRP will react.
Top analysts’ price target is hinged at the $1 mark in the short to long term.
With the upcoming Bitcoin halving event only a few days away, investors have been drawn to its potential impact on the price of XRP, the cryptocurrency associated with Ripple Labs Inc. While XRP has taken a rather slow pace this bull season, traders and investors are wondering if the cryptocurrency could climb to the $1 mark.
Bitcoin Halving and XRP
Bitcoin halving is an event that occurs approximately every four years, reducing mining incentives by half.
Also, it limits the supply of Bitcoin, thereby keeping its price valuation intact. Although Bitcoin halving will not have a direct effect on XRP’s price, it may have certain indirect implications. This is because it is associated with a dispersed user ratio, where momentum from Bitcoin often transitions toward other cryptocurrencies.
Crypto analytics platform CoinCodex forecasts gains of about 15% for XRP by April 24. “The XRP price forecast for the next 30 days is a projection based on the positive/negative trends in the past 30 days. Based on these XRP projections, XRP will be changing hands at $ 0.574411 on Apr 24, 2024, gaining 15.42% in the process,” noted CoinCodex.
Based on technical indicators, XRP’s short-term 50-day SMA is estimated to hit $ 0.587698 by May 17. Additionally, the Relative Strength Index (RSI) momentum oscillator, a popular indicator that signals whether a cryptocurrency is oversold (below 30) or overbought (above 70) is at 34.54, which indicates that the XRP market is in a breakout position.
While the anticipation of the Bitcoin halving can lead to increased speculative trading and investor interest in XRP, it is still uncertain if XRP could climb to $1 soon. However, the effect of spot Bitcoin Exchange-Traded Fund (ETF) approvals on XRP has been indirectly positive.
At the time of writing, XRP is up 1.43% trading at $0.4845 with its market capitalization pegged at $26.7 billion, according to Markecap data.
This makes XRP the 7th largest cryptocurrency by market capitalization. Meanwhile, the coin’s trading volume is down by 32.6% to $1.6 billion, implying reduced investor confidence.
Other Factors That Could Influence XRP’s Price
With Bitcoin able to obtain approval for its spot ETFs, it is clear that Ripple and the XRP will compete fairly in the future. XRP’s appeal to investors may increase if Ripple eventually wins its long-standing legal battle against the US Securities and Exchange Commission (SEC).
Expanding on what was earlier reported by Crypto News Flash, Ripple is preparing to answer the SEC’s penalty request by April 22. Stuart Alderoty, Ripple’s Chief Legal Officer stated that there are no trials or pretrial sessions as allegations against executives Brad Garlinghouse and Chris Larsen have been dismissed.
Ripple’s entry into the Decentralized Finance (DeFi) ecosystem could also cause a substantial increase in the price of XRP. As previously reported by Crypto News Flash, Ripple is leading the way in DeFi developments with a new lending protocol on the XRP Ledger aimed at improving financial inclusiveness and transparency.
