The XRP token, a significant player in the crypto market, stands in the limelight today as its price took a downturn, reflecting a pattern seen across the cryptocurrency sphere. In today’s trading, XRP’s price downgraded about 1.5% to $0.50, culminating in a week-to-date return of -4.5%. This decline mirrors the overarching bearish sentiments across top-ranked digital assets – BTC and ETH witnessed a downfall of 1.8% and 3.5% respectively.
What might be the reasons behind this dip in XRP’s price?
Interestingly, the answer could lie in the unfolding geopolitical situation, specifically the exacerbating conflict between Israel and Palestine. The crypto sphere has always shared a negatively correlated relationship with geopolitical tensions, exhibiting notable downturns during such crises. For instance, as Hamas initiated attacks on Israel, the total capitalization for cryptocurrency fell by a staggering $32 billion. Conversely, conventional safe havens witnessed an influx, with gold and U.S. Treasuries observing a spike in demand.
Another factor contributing to the diminishing value of XRP is the large-scale token transfers seen over this week. A ripple-affiliated address moved an enormous sum, 60 million XRP (approx. $30 million), to an unidentified wallet. Over $15 million got transferred to the crypto exchange, Bitstamp.
Does this signify an impending crisis for XRP?
From a technical perspective, XRP’s recent price trends hint towards a potential Bump-and-Run-Reversal (BARR) pattern, typically formed when accelerated speculation pushes an asset’s price swiftly upwards, often culminating in a “bull trap”. This pattern is confirmed when prices bust through its lead-in trendline, depreciating roughly equal to its highest point. If the BARR setup is accurate, XRP’s price might experience a 50% slump to $0.25 over forthcoming months.
However, this outlook isn’t necessarily set in stone. Provided XRP’s price retakes its lead-in-trendline and maintains its 50-3D and 200-3D exponential moving averages, the downside prediction might become void. If this happens, the next upside target for XRP could be its 0.236 Fib line (approx. $0.69), nearly 40% up from current rates.
Remember, every investment and trading move comes with respective risks, and individual research is crucial before making any concrete decisions. Stay tuned for subsequent updates and adjusted forecasts.
Source: Cointelegraph
