The XRP’s market trajectory has turned decidedly bearish, with its value dipping by approximately 5% in the last day alone, reaching a somber $0.62380. Many recall the last time XRP stumbled this low was mid-July when Ripple’s partial victory over the SEC offered traders an infusion of optimism. Its four-day price deterioration accompanied by rampant speculation has shaken the market, with a hefty trading volume of $1 billion fanning the uncertainty.
The intriguing facet of this downturn is the sudden unleashing of 100 million XRP by large holders, indicated by tailored data from Santiment. Over two weeks, XRP fell by about 25%, and the consequent sale by the holders has sprinkled additional anxiety over XRP’s price resilience. Interestingly, such large holders, who own between 100,000 to 1 million XRP, exploited the decline to pocket profits after XRP peaked at $0.85 in July 2023.
Despite the recent volatile turns, optimism is far from lacking. Ripple recently disclosed that about 70% of global financial leaders harbor a favorable outlook on cryptocurrencies. This sentiment indirectly boosts Ripple’s influence since it serves numerous financial institutions with crypto services. Leaders are wooed by tokenization’s transformative potential, which could revamp industries extending from stock trading to event planning and gaming. Blockchain technology accelerates innovation, leading to refined operational efficiencies, data management, and financial agility.
Ripple, with its inclusive range of services and on-demand liquidity platform serves over 300 institutional clients using XRP. This service range allows the company to tap into diverse areas such as micropayments, cross-border transactions, and simple digital payments. However, substantial profit-taking in the market has exerted pressure on XRP.
Recently, Ripple was victorious in its legal feud with the SEC, granting future clarity to its operations and affirming XRP as non-security. Spearheaded by Ripple’s President, Monica Long, the company intends to re-engage with the American market. Despite countries like UK, Europe, Singapore, and Dubai offering clear regulations, Ripple is now set on reviving its operations in the US.
Analyzing the technical viewpoint, Ripple’s price is hovering around the 0.6239 mark after breaking below the significant support level at 0.6590. This trend could potentially push Ripple’s price towards the next significant support area of 0.5750 and perhaps lead to an intensified bearish movement dipping under 0.5000 level. On the flip side, substantial resistance at the 0.6590 level could potentially unleash buying up to the 0.7153 level or even higher at 0.7700 level.
Interestingly, there’s a new player in town – XRP20. This unique proof of stake (PoS) token on the Ethereum blockchain is inspired by Ripple’s philosophy and tokenomics tailored for retail investors. It is crucial to denote that despite drawing certain elements from Ripple, XRP20 operates independently without any direct connection to the vastly circulated XRP. Its presale is presently open, with over $660,000 raised toward the soft cap of $1,850,000.
Always remember cryptocurrency is a high-risk sentiment-centric asset. Capital exposures should always be carefully calibrated. With crypto, surges can be instant, but the falls have been known to be just as swift, if not swifter.
Source: Cryptonews
