XRP Might Sink Like Titanic Ship
Price action highlighted that Ripple’s token XRP faces huge price correction. It is obviously overbought because technical indicators like the RSI show it above 70 points. About 80% of the altcoin fell the last time this occurred.
The number of leveraged positions on the token is rising. An imbalance favoring long positions could make the correction worse. Ripple sells 200 million XRP in its regular monthly sale.
A possible long squeeze that might push XRP’s price lower is indicated by the requirement that traders holding long positions in the cryptocurrency pay short-sellers a 66 percent annual percentage rate (APR) funding rate. Even with these cautionary indicators, XRP might still find the strength to keep rising, as it has in the past.
However, traders and investors must exercise caution when navigating this volatile market due to the inherent volatility and unpredictability of crypto assets
XRP achieved a record-breaking market capitalization of $166 billion this year, even though the token was trading below its peak price. XRP surpassed Solana and Tether to become the third most valuable cryptocurrency by market capitalization.
Even though Ripple is still selling tokens and unlocking them, the peak market capitalization shows strong demand, which adds to the inflation of the circulating supply. Ripple, the biggest owner of XRP, is getting ready for what might be its last significant sale of 2024.
Ripple’s underlying technology has carved out a distinct niche in the financial ecosystem, one of the main advantages of investing in XRP is its demonstrated effectiveness in cross-border transactions. Furthermore, transactions involving XRP are less expensive than those involving more conventional financial counterparts, which appeals to investors seeking lucrative opportunities.
However, constant regulatory scrutiny and legal opposition to XRP, particularly in areas suspicious of its business model. This uncertainty may affect investor confidence and cause market swings. The decentralization-oriented cryptocurrency community has also expressed concerns about the centralized structure of its parent business, Ripple.
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