Can Ripple (XRP) recover to $3?... "Year-end rebound depends on Bitcoin and interest rates"

▲ Ripple (XRP) ©Go Da-sol

XRP (Ripple) is facing strong resistance around $1.50, but there's a possibility it could recover to $3 by the end of this year. An analysis suggests that if Bitcoin (BTC) reclaims $100,000 and conditions for a U.S. interest rate cut are created, XRP could also resume its upward trend. However, geopolitical uncertainties and inflation burdens remain variables.

According to cryptocurrency media outlet Watcher.Guru on September 30 (local time), XRP's upward movement is currently limited in the $1.50-$1.55 range. Based on CoinGecko data, it has fallen by 8.4% in the past week, and its decline over the past year amounts to approximately 48%. However, it has maintained an upward trend on a daily, 14-day, and monthly basis. XRP, which recorded an all-time high of $3.65 in July last year, has not recovered above the $3 mark since it last traded above that price in early October of the same year.

XRP rose from late August to early September, buoyed by a general rebound in the virtual asset market, but the rally did not last long as the U.S. Federal Reserve (Fed) raised benchmark interest rates to curb inflation. High interest rates act as a factor dampening investment demand for risky assets, and analysis suggests that XRP will also find it difficult to regain strong upward momentum unless the macroeconomic environment improves.

However, Watcher.Guru highlighted the possibility of a renewed rebound in the virtual asset market by the end of this year. Investment bank Bernstein predicts that Bitcoin will recover to $100,000 by the end of 2026. If BTC reaches that price level and a new bull market forms across the market, XRP also has the potential to rise to $3. This is a conditional forecast based on Bitcoin's rise and a recovery in overall investor sentiment in the virtual asset market.

The conflict between the U.S. and Iran was also cited as a major variable that will influence XRP's year-end price. With increased volatility in international oil prices due to the conflict between the two countries, an analysis suggests that if negotiations are concluded, energy prices could stabilize, easing inflationary pressures. If price increases subside, the likelihood of a Fed interest rate cut increases, which could lead to an inflow of investment funds into virtual assets, including XRP.

Ultimately, whether XRP recovers to $3 depends less on its individual price movements and more on Bitcoin's re-break of $100,000, U.S. monetary policy, and the easing of geopolitical tensions. While Watcher.Guru left open the possibility of a rise by the end of this year, it assessed that the direction of the virtual asset market remains unclear. If a Bitcoin bull market resumes and conditions for interest rate cuts align, a re-challenge of $3 is possible, but if macroeconomic uncertainties persist, a rebound could be delayed.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*