As we step into the second month of the New Year, no cryptocurrency has yet shown signs of being the clear frontrunner. The current market response to cryptocurrency movements has been largely lukewarm; however, the possibility of Ripple hitting $1 in 2024 is one thing that continues to generate hope.
Taking a glance at Ripple’s performance as of today does not seem to indicate that this is even doable. But there are a lot of things happening right now that could be limiting its expansion. In light of this, let us examine the potential hurdles and other variables that could influence whether or not XRP reaches $1 this year.
Investors might want to carefully consider these factors before deciding whether to or not.
Keeping long positions open costs record amounts for optimistic XRP traders
XRP’s price has been all over the place recently, with Bitcoin (BTC) and other major altcoins, such as Solana (SOL), soaring to new 2023 highs. In the futures markets, XRP-positive traders have been more aggressive, though spot markets have had a more muted price performance.
The near-frenetic price variations in December have coincided with XRP Funding Rates hitting historic heights, confirming this stance. Data from leading analytics platforms for the derivatives market shows that the XRP Funding Rate hit 0.053%, the highest level so far in 2023. For XRP perpetual futures traders, this climax was indicative of a protracted, strongly positive trading outlook rather than a one-off spike. In the context of derivatives trading, the Perpetual Funding Rate is a measure that stands for the expense of maintaining a perpetual contract position for a long time.
There is a “funding fee” that long-term investors pay to short-term traders when the perpetual contract’s price is higher than the underlying asset’s spot price. As a result, futures traders are paying record fees to keep their LONG positions open, while the .
Can the price of XRP hit $1 in 2024?
The current market consensus is that XRP might hit $1 in 2024. Increases in the funding rates for XRP are a clear sign that optimistic traders are ready to pay a premium to maintain their long positions, as their confidence in the continued price increase of XRP is growing.
Sooner rather than later, the spot market price of XRP will start to approach $1 if bulls keep trading aggressively in the futures markets.
Also, leading market watchers and analysts have already begun to see certain long-term narratives that might propel the price of XRP toward $1 by 2024.
The worldwide importance of Ripple
Even though the asset’s utility is hard to grasp outside of the Bitcoin ecosystem, Ripple has profited from it. The money-transfer business is, in fact, Ripple’s bread and butter. They have solidified their position as a crucial component of global finance through their work with over 70 nations and corporations for international payments.
Quite a few regional expansions are in the works to keep that trend going. In addition, it keeps Ripple at the forefront of the financial industry as a whole. Consequently, this significance gives a strong argument in favor of a Spot Ripple XRP ETF. Though it is unlikely to happen in 2024, people are nonetheless curious about the potential direction the asset price could go in the next eleven months.
Taken together, many have assumed that the asset’s total value might rise, though the shroud of uncertainty lingers due to the . If Ripple is able to address their current situation efficiently, it stands every chance to rise significantly higher.
Final words
XRP’s popularity and usage have skyrocketed in the past few years, making it one of the most widely used digital currencies. A large number of industry insiders see XRP as having tremendous future potential and are optimistic about its prospects.
The demand for Ripple’s On-Demand Liquidity service surged ninefold annually, according to its Q2 profitability report, even though the price of XRP dropped. Impressively, ODL sales reached $2.1 billion in just the second quarter! As part of its commitment to upholding environmental sustainability goals and remaining carbon neutral, Ripple is also investing a substantial $100 million to engage in carbon removal initiatives.
Ripple’s vision and outlook are undoubtedly futuristic, which gives hope to investors to expect a revival and price surge in the coming months.