The decline in XRP price, as much as 3.4% in the past 24 hours, echoes across the barely-moving cryptocurrency market. The altcoin has stumbled by 12% in the last seven days, yet displaying an increase of 31% in the past month and an eye-catching 81% ascent since the turn of the year. Interestingly, this comes on the back of a 27% decline since the judgement in Ripple’s proceedings with the SEC.
While the market’s initial optimism appears to have been tinged with recent skepticism in light of Coinbase’s evolving case with the securities regulator, XRP, bolstered by Ripple’s new partnerships, appears to have firm fundamental footing. Technical indicators, however, paint a bleaker picture as the 30-day moving average forms a ‘death cross’ with the 200-day average, signaling potential major losses.
Beyond these indicators, the tumbling support level since the altcoin’s July surge, coupled with a relative strength index (RSI) dipping below 30, forecast further impacts on XRP. Despite this potential downswing, argument holds that XRP, given its RSI under 30, might have bottomed out, setting the scene for a rebound.
An influential factor in XRP’s recent struggles is the legal disputes involving Coinbase and Binance. The former’s case especially curdled market sentiments with regulators asking for all cryptocurrencies barring Bitcoin to be removed from the exchange. The lackluster defense put forth by Coinbase, combined with these legal battles, has potentially neutralized the positive fervor borne out of Ripple’s partial victory.
That said, XRP’s road to recovery did get a twofold boost – signing key partnerships and embarking on a stablecoin trial with the Republic of Palau, alongside the news of the Bank of England exploring the use of XRPLedger for inter-bank transfers.
While recovery seems inevitable, XRP20, an Ethereum-based version of XRP designed for income-generating staking, might sway traders waiting for XRP’s rebound. Launched last week, the new altcoin promising staking has already garnered nearly $1 million in presale. Priced at $0.000092, a level once scaled by XRP back in 2014, XRP20 aims to provide investors opportunity to make up for previously missed all-time highs.
Offering a maximum supply of 100 billion, with 40 billion each for presale and staking rewards, XRP20 also commits to a deflationary model via 10% supply burn over time and 0.1% per transaction. Unfortunately, the high-risk nature of cryptocurrency class investments mean it’s all too possible for investors to lose their capital.
Source: Cryptonews
