Once-booming cryptocurrency Ripple (XRP) finds itself in a vulnerable situation. The value of XRP dropped significantly last month, which has left analysts and investors in flux.
With technical indicators suggesting a possible reversal of fortune, some worry a continuous fall while others see possibility for a return. XRP’s future is still unknown, though, and the continuous legal conflict with the SEC and more general market mood will be quite important.
A Downturn And Dampened Enthusiasm
For XRP holders, the last several weeks have been a wild journey. Once the only one with seeming regulatory sanction in the United States, the cryptocurrency has dropped over 5% in just one week alone.
The price dropped as low as $0.49 then rebounded somewhat to reach its present level of $0.50. This downturn has corresponded with a clear slowing down of crypto community excitement. XRP discussions have faded, and the typical “bullish” fervour appears to have quieted.
Technical Signals And Expert Opinions
Though the future seems bleak, XRP has some promise. On TradingView, analysts point to technical signs suggesting a possible rally in progress.
Usually connected with positive momentum, the chart indicates a sequence of “higher lows and higher highs.” Besides, the $0.50 mark looks to be serving as a support level. Every time the price falls around this position, it marginally recovers to suggest that some investors find it appealing as a starting place.
Some analysts share this optimistic view. Renowned crypto researcher Dark Defender is still positive about XRP’s future for 2024, foresaw as a jump to $1.80 before year’s end Egrag Crypto has polled almost 4,000 people of the crypto community to also find conflicting emotions.
A substantial majority (61%) expressed hope about XRP’s capacity to join in an expected bull run, while a sizable minority (40%) stayed cautious.
Total crypto market cap currently at $2.2 trillion. Chart: TradingView
Clouds Over XRP: The Looming Legal Battle
The road forward for XRP is not really clear-cut. Ripple Labs’ continuous legal struggle with the US Securities and Exchange Commission (SEC) keeps a lengthy shadow over things. The case, which mostly questions whether XRP is a security, has caused market uncertainty and damaged investor trust.
This regulatory uncertainty makes it challenging for institutional investors to join the XRP market, so reducing its possible for notable expansion.
XRP price down in the weekly timeframe. Source: Coingecko
Market Sentiment And Ripple Effect
Furthermore adding pressure on XRP’s price is the general negative attitude engulfassing the crypto market. The barometer of the bitcoin market, has witnessed a notable downturn recently, pushing numerous altcoins—including XRP—down with it. This sets off a domino effect whereby negative attitude in one coin spreads across others, aggravating the drop even more.
Featured image from Getty Images, chart from TradingView