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Last month was great for $XRP ($XRP) as the value of this digital asset increased by over 20%. This boost was part of the overall trend in the cryptocurrency market, where many assets are experiencing gains.
The recent rise in $XRP’s price has sparked renewed interest among investors, leading traders to consider its investment potential.
In light of this, Finbold has calculated the current value of $1,000 invested in $XRP at the start of January 1.
Historical data indicates a potential surge in the $XRP price
In analyzing the historical data of $XRP, a notable trend emerges regarding its monthly closes relative to the 21 Exponential Moving Average (EMA). Examination reveals that $XRP tends to undergo multiple monthly closes below the 21 EMA before witnessing a substantial price surge, as depicted in the chart (blue box).
However, the current scenario presents a departure from this historical pattern. Since September 2022, $XRP has demonstrated a consistent trend of monthly closes above the 21 EMA. This persistent behavior indicates a potential shift towards a more bullish market setup.
Such consistent closes above the 21 EMA signal a stronger upward momentum, suggesting the possibility of more aggressive and robust price movements in the foreseeable future, as per a post on X from cryptocurrency analyst EGRAG CRYPTO on March 1.
This observation underscores the importance of monitoring $XRP’s performance relative to the 21 EMA as a key indicator of its bullish trajectory.
$XRP price chart
$XRP launched 2024 with vigor, boasting a valuation of $0.6157 on New Year’s Day. However, despite this promising beginning, the price of $XRP dipped below the $0.60 mark shortly afterward and has struggled to reclaim it until recently.
It remains slightly below the levels observed two months ago, resulting in a year-to-date regression of -4.93%.
Nonetheless, over the past seven days, $XRP has experienced a notable increase of 11.28%, aiding in recovering some of its previous losses. This recent surge suggests the potential for $XRP to surpass the levels seen at the beginning of the year.
It’s worth noting that Ripple unlocks a designated amount of $XRP every first day of the month. This time, the unlocked amount will total $600 million, contributing to the token’s inflation. Ripple’s consistent unlocking of $XRP significantly impacts its market dynamics and overall value.
What would $1,000 invested in $XRP be worth now?
If you had invested $1,000 in $XRP at the beginning of 2024, your investment wouldn’t have performed particularly well up to the present moment.
Specifically, due to the -4.93% decrease since the holiday season, as of March 1, your investment would be valued at $950.7.
However, considering the current market dynamics, which are positioning this digital asset for a surge, this decrease may not turn out to be a significant loss in the long run.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.