Ripple: XRP might Sink To $2 mark
The Ripple-based token struggled to break through key resistance at $2.5 despite Bitcoin breaking above the $85K mark in the early hours of Monday.
Market action showed XRP’s bullish run switched off despite Ripple’s closure with SEC. There are indications of strain in XRP’s macro momentum. On-chain data showed XRP’s network’s growth is now at its lowest point in four months because of reduced production of XRP addresses.
The altcoin is trading just below the $2.5 resistance level. XRP has failed to break through this level twice this month amid weak market condition
The absence of new address creation for XRP indicates that the altcoin is having trouble luring new investors. The token’s prospects are hampered by no market incentives for new investors to join the Ripple network. XRP’s inability to overcome this resistance may indicate that the consolidation phase will continue given the state of the market.
XRP is presently in a consolidation phase. If bearish sentiment intensifies, the remittance token may fall below its $2.2 support. The price might drop to $2 or less under this market condition. This is a crucial metric for evaluating a cryptocurrency’s traction in the market since a surge in active addresses typically signifies increased adoption.
XRP’s value surged after Brad Garlinghouse, the CEO of Ripple, declared earlier this week that the case against the SEC had ended favorably for the company.
The token rallied as high as $2.6 before sinking lower. Whether it was another traditional “sell-the-news” incident was another topic of discussion.
Additionally, Sentiment cautioned that digital assets frequently perform oppositely from what the general public anticipates. Therefore, XRP may soon undergo a correction, which would have a more severe and agonizing impact if it results in a wave of liquidated long positions.
Black Swan Capitalist co-founder Vandell Aljarrah questioned why people are selling now and maintained that XRP will hit a double-digit price this year.
Aljarrah questioned the reasoning behind this action on social media. He said, “It’s unbelievable that people are selling right now.”.Interestingly, with the Ripple vs. SEC deal and America entering a new era of regulatory clarity, it now appears that selling XRP was a bad idea.
According to a community member, some investors who are currently selling may be doing so because they are struggling financially. Aljarrah admitted that these can be difficult, but maintained that investors who want to be successful must be tough during this time.
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