Should you buy XRP while it’s below $4?

the XRP ((XRP 0.95%) Cryptocurrency has been a disappointing investment for a long time. From January 2022 to the end of 2023, the digital currency followed TrendSetter Bitcoin ((BTC 2.51%) Less and then sideways, less of a performance S&P 500 ((^GSPC 0.53%) Stock market index during an inflation panic. XRP continues to struggle in 2024 while Bitcoin and the stock market soar.

Then the currency formerly known as Ripple found a new life. The price per XRP has more than Quintupled from November 11 to January 21:

XRP price Data by ycharts

I thought XRP looked promising When it was worth less than $0.60 per coin, five months ago. I still call it a good buy In mid-December, it’s just under the $3 price point. Did XRP peak in January, or did this cryptocurrency have some rocket fuel left to burn?

Let’s take a look.

Why XRP is rallying now

The price of XRP did not rise in a vacuum. Cryptocurrency operates on several balls that boost value in the air.

• The second Trump administration promised to give cryptocurrencies a lot of support, starting with a crypto-friendly name to lead the Securities and Exchange Commission. As the third-largest cryptocurrency by market today, and with a high-profile SEC lawsuit making its way through the court system after more than four years, it’s potentially very good news for XRP investors.
• Ripple Labs recently launched the XRP pool stablecoin Named The US dollar rippled ((rlusd 0.00%). This digital cash alternative will make the RipPlenet international payment system more stable and easier to use, especially for large organizations sending million-dollar payments across foreign borders.
• Among other features, stablecoin usd stablecoin Ripple can be used to “replicate” a variety of assets in the real world. Along with digital dollars, ownership contracts for many investment securities can then be sent to international buyers.
• I haven’t been out of useful Ripple USD features yet. stablecoin is compatible with both XRP and ethereum ((eth 4.77%)building a bridge between two of the largest and most popular cryptocurrency systems. More specifically, the Ethereum Ripple USD and XRP connection gives access to it Decentralized finance market In a whole new way.
• Following last year’s introduction of exchange-traded funds (ETFs) to track the price of Bitcoin and Ethereum, another wave of spot price ETFs could roll in before the end of 2025. With a market cap of $182 billion on January 21, XRP is near the top From your ETF wish list. These funds promise to increase crypto prices by allowing new investor lessons to pour money into the connection Crypto ETFs. Several financial management firms have already filed paperwork to begin the SEC review process for XRP-based ETFs.
• The number of active XRP accounts and XRP transactions increased in December. In other words, Ripplenet’s thriving payment system supports an investment thesis focused on real use for what XRP was always meant to do.

None of these value-boosting moves are surprising to longtime XRP watchers. However, there is a world of difference between hoping for a more crypto-friendly system and installing an actual system. Likewise, it makes sense to remain quiet about XRP’s long-term future until support features like Ripple USD Stablecoin and tokenized contract transfer are rolled out.

Can XRP continue climbing the crypto mountain?

I cannot promise that the XRP price chart will tilt significantly throughout the year. However, the 15-year history of the Crypto market suggests that most of the leading coins should do well in 2025 and XRP has several price levers of its own.

So I wouldn’t be surprised if XRP continues to climb to pass the $4 benchmark soon. At the same time, I’m not entirely sure that XRP deserves to be among the top three crypto names in the long term. So there may be some turbulence ahead, and XRP may face a painful price correction at some point. This is a high-flying crypto manor Not for the faint of heart.

XRP is one of the biggest holdings in my crypto portfolio after the recent price increase, but I haven’t bought any new coins since December 2020. XRP Position If you haven’t already.

However, it is not an option from above at the moment. Higher currency rates also increase the risk of incoming rate cuts, if one or more ongoing growth catalysts do not work as expected. I hope More promising fresh crypto investment ideas these days.