In July of this year, the cryptocurrency world witnessed an electrifying moment as XRP (XRP), the digital token associated with Ripple, experienced an astonishing surge in price.
This meteoric rise was triggered by Ripple’s significant legal triumph over the United States Securities and Exchange Commission (SEC). During this exciting period, XRP soared above the $0.80 mark, a level not seen since April 2022.
However, the euphoria of that victory was short-lived, as XRP’s value swiftly nosedived, wiping out its gains and leaving investors pondering the future of this once-promising token.
“$XRP has retraced the entirety of the move that came after the SEC vs. Ripple case,” popular crypto trader Benjamin Cowen emphasized on September 12.
“Narratives do not drive the market, liquidity does,” Cowen added, referring to how XRP’s earlier surge proved to be unsustainable because it was not supported by a strong enough increase in liquidity or trading volume.
Essentially, even if a positive story or news event temporarily drives up the price of an asset, it’s the underlying liquidity, or the actual supply and demand for that asset, that ultimately determines its price trajectory over the long term.
XRP price analysis
At the time of writing, XRP was trading at $0.48, up around 0.6% in the past 24 hours.
Over the past week, one of the world’s biggest altcoins declined more than 5%, losing $1 billion in market cap during that period. On a monthly chart, XRP’s plummeted around 24%.
The cryptocurrency currently faces a support level at $0.45028, indicating a price point where buying interest may increase, potentially preventing the cryptocurrency from falling below this level. Conversely, it encounters resistance at $0.50011, signifying a barrier that XRP must overcome to continue its upward momentum.
Year-to-date, XRP’s performance remains positive at +41%.
The bearish sentiment surrounding XRP lately has been reflected by the cryptocurrency’s fear & greed index, which currently sits at 30/100, indicating a ‘fear’ phase, according to CoinCodex data.
Furthermore, the token recorded just 13 green days (43%) over the past month, with price volatility of 7.5% during that period.
Interestingly, the platform’s prediction feature projects XRP to hit $0.65 by September 17, implying a potential upside of more than 37%.
However, a rebound of such a large margin in just five days seems unattainable, particularly considering the ongoing uncertainty in the broader crypto market.
Amidst its recent price crash, Ripple has moved 100 million XRP kept from the 1 billion token unlock on September 1, Finbold reported on September 12. 72 million of those tokens were moved through five different accounts prior to being deposited in small batches to four different exchanges, suggesting the holdings were sold.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
