XRP Price Prediction: No All-Time High in Sight

XRP's price surged by 282% over the past 90 days, indicating a remarkable performance among altcoins. However, the token's current momentum has faltered.

XRP’s price has surged by 282% over the past 90 days, outperforming Bitcoin (BTC) and most altcoins during this period. This remarkable performance has also coincided with a surge in XRP DEX volume, which reached $61.01 million on December 2.

This development has led to speculation that XRP could be poised to lead altcoin season, especially considering its strong performance and role in facilitating fast settlements of different currencies on the XRP Ledger (XRPL).

However, the recent downturn in XRP’s price and a shift in altcoin season dynamics could impact the token's ability to reach new highs. Here's a closer look at the factors affecting XRP's price and its potential to reach a new all-time high before 2024 ends.

XRP Price Surges 282% in 90 Days, But Recent Pullback Could Hinder New Highs

The altcoin season is a period when non-Bitcoin cryptocurrencies collectively outperform BTC. To determine whether an altcoin season is occurring, the Altcoin Season Index tracks the percentage of the top 50 non-BTC coins that outperformed Bitcoin over a specific period, usually a quarter or a year. If 75% or more of these coins outperformed BTC, then an altcoin season is confirmed.

During Q4 2023, XRP was among the top performers, contributing to a peak in the Altcoin Season Index to 78. This indicated an undeniable altcoin season, especially with multiple altcoins, including XRP, outperforming BTC throughout the quarter.

As of late, however, this momentum has shifted with a decline in altcoin prices. This shift has also led to a drop in the Altcoin Season Index to 47, reflecting a move toward neutral sentiment.

Should this momentum continue to fade, then XRP price risks falling below $2, making it less likely for the token to reach a new all-time high before 2024 ends.

Another indicator that could support this extended decline is the XRP DEX volume. This metric measures the value of the cryptocurrency traded on the XRPL over a period of time, usually a day.

When the DEX volume rises, it suggests increasing demand for the token. On the other hand, a dwindling DEX volume indicates decreasing demand.

As mentioned above, the XRP DEX volume climbed to $61.01 million on December 2. Today, it is down to $2.66 million, indicating that the value of the token traded dropped by approximately $58 million. If sustained, XRP price might face sustained downward pressure.

XRP Price Death Cross Signals Potential Downturn

On the 4-hour XRP/USD chart, the altcoin has faced a death cross. A death cross occurs when the longer Exponential Moving Average (EMA) slides below the shorter one and is a bearish sign.

The opposite is called a golden cross which involves a crossover of the longer EMA above the shorter one. As seen below, the 50 EMA (yellow) has risen above the 20 EMA (blue) as the price has also dropped below these indicators.

Should this trend continue, XRP’s value could decline to $1.75. However, if sentiment turns bullish and the EMAs form a golden cross, the trend might reverse. If that happens, the XRP price might rally to $2.90.

XRP’s price has faced a death cross on the 4-hour chart, indicating a potential downturn. However, the 50 EMA might act as support, leading to a potential bounce. If this occurs, XRP price could rise to $2.90, setting it up for a new all-time high.

If not, then the EMA might amplify the bearish pressure, pushing XRP price down to $1.75 before 2024 ends, making a new all-time high unlikely.