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Will XRP Plunge Below $3? Learn the Key Reasons Behind the Prediction.
In the latest pundit news, legal expert Bill Morgan has humorously forecasted a potential plunge in XRP’s price, predicting it may drop below $3. This ironic take comes as he highlights an array of bullish developments that have failed to support the altcoin’s price.
Morgan’s prediction surfaced in a recent post where he expressed disbelief at XRP’s continued decline despite positive news. He notably pointed to Ripple’s recent collaborations with DBS and Franklin Templeton, which aim to create a trading and lending solution utilizing tokenized money market funds on the XRP Ledger, alongside stablecoins like RLUSD. These partnerships are expected to enhance liquidity and utility within the XRP ecosystem, yet they have not translated into price gains.
XRP’s Good News Not Enough to Stabilize Price
Prior to making his prediction, Morgan noted that XRP’s price had consistently faltered, even amid a slew of favorable announcements. Among these was the launch of the REX-Osprey XRP ETF, recognized as the first U.S. fund providing investors with direct exposure to XRP. Additionally, he mentioned the CME Group’s plans to introduce options on XRP futures, set to launch on October 13.
Interestingly, the Federal Reserve’s recent interest rate cuts were anticipated to bolster XRP’s market performance. Typically, such monetary easing tends to lend support to risk assets, including cryptocurrencies. However, Morgan reflected on the puzzling nature of the altcoin’s performance, likening the current sentiment to “Déjà vu” reminiscent of trends observed between 2018 and October 2024.
In another post, Morgan further jested about his reluctance to share more good news, fearing it might exacerbate XRP’s downward trajectory. He referenced Coinbase’s announcement that XRP and Solana’s perpetual-style futures had seen remarkable growth, generating over $1.9 billion in notional volume with more than 1.6 million contracts traded.
Understanding the Underlying Factors Behind XRP’s Decline
Eventually, Morgan conceded that the reasons for XRP’s decline are not shrouded in mystery. He pointed towards Bitcoin’s price dynamics as the primary catalyst affecting XRP’s movement, rather than the positive developments he had previously cited. This correlation with Bitcoin underscores a critical aspect of market behavior, where altcoins often mirror the movements of the leading cryptocurrency.
This perspective aligns with Ripple’s expert testimony in the ongoing SEC vs. Ripple lawsuit, reinforcing the idea that broader market trends significantly influence individual asset performance.
In the context of market analysis, crypto analyst CasiTrades echoed Morgan’s sentiments, indicating that XRP’s price decline mirrors Bitcoin’s struggles. She cautioned that the altcoin’s failure to establish a new local high opens the door for a deeper correction. CasiTrades projected that XRP could potentially dip to a range between $2.92 and $2.94, aligning with both the .618 retracement and the measured C-wave extension.
As of the latest data, XRP is trading around $3, reflecting a downturn over the past 24 hours, according to CoinMarketCap. Investors may want to keep an eye on these developments as they unfold.
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