Ripple’s XRP token displayed an incredible run over the last month. The asset climbed to a new all-time high of $3.65 on July 18 after more than seven years. XRP’s price has since faced quite a drop. The asset’s price is down 4.7% in the last 24 hours, 8.9% in the last week, 0.5% in the 14-day charts, and 14.2% over the previous month. Despite the steep correction, the popular cryptocurrency has gained 425.1% since August 2024, according to CoinGecko data. While XRP’s fall is concerning, it could present an opportunity for investors to buy the asset at a low price.
Should You Buy The XRP Dip?
Buying the dip has often proven to be a solid investment strategy. XRP is expected to hit new peaks over the coming months. The asset’s recent climb was likely due to the SEC officially ending its years-long lawsuit against Ripple. The end of the lawsuit has started a new era for the popular cryptocurrency.
XRP’s rally was also propelled by a general market bullishness earlier this month. Consumer price index (CPI) data came in lower than anticipated for the month of July. The development led to a substantial boost in investor sentiment. Low CPI numbers have increased hopes for an interest rate cut in September.
However, the rally did not last very long. The market began to see liquidations on Aug. 14, after producer price index (PPI) numbers came in higher than expected. PPI rose by 0.9% instead of the anticipated 0.2%. The move has cast a shadow on whether the Federal Reserve will cut interest rates next month or not.
Also Read: Ripple (XRP) May Be Moving Towards a $1 Trillion Market Cap
XRP is still anticipated to grow over the long term. There are several spot XRP ETFs awaiting approval at the SEC. There is a very high chance that the SEC will approve at least one XRP ETF sometime this year. An ETF approval will likely lead to a surge in institutional inflows into XRP. Such a scenario could lead to XRP hitting new all-time highs.
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