XRP is sinking? Why is the price of altcoins continuously experiencing a big dump?
Once thriving, the cryptocurrency Ripple (XRP) finds itself in an unstable situation. Over the past month, the value of XRP has plummeted, leaving investors and analysts in a constant state of flux.
Although some people are concerned that the price will continue to fall, others believe that a comeback is possible, and technical indicators suggest that the fate may reverse. However, the future of XRP remains uncertain, with ongoing legal battles with the SEC and broader market sentiment playing a crucial role.
In the past few weeks, it has been a difficult experience for XRP holders. This cryptocurrency used to be the only one to receive significant regulatory approval in the United States, but it fell more than 5% just last week.
The price once fell to $0.49 and then slightly rebounded to around $0.50. This downward trend coincided with a noticeable decrease in enthusiasm within the crypto community. Discussions about XRP have decreased, and the usual bullish sentiment seems to have calmed down.
Despite the dim prospects, there is still some hope for XRP. Analysts point out that technical indicators indicate the potential for a rising trend.
The chart shows a series of "higher lows and higher highs," which is typically associated with a bullish trend. Additionally, the $0.50 level seems to be a support level. Each time the price drops close to this point, it experiences a slight rebound, indicating that some investors consider it an attractive entry point.
This bullish sentiment has been supported by some experts. Famous cryptocurrency analyst Dark Defender remains optimistic about the prospects of XRP in 2024, expecting it to soar to $1.80 by the end of the year. A recent survey conducted by Egrag Crypto among nearly 4,000 members of the cryptocurrency community also revealed mixed feelings.
Although the majority of people (61%) are optimistic about XRP's participation in the upcoming bull market, a considerable minority (40%) still have concerns.
The future of XRP is still uncertain. The ongoing legal battle between Ripple Labs and the Securities and Exchange Commission (SEC) in the United States continues to cast a long shadow. The lawsuit revolves around whether XRP is a security, bringing uncertainty to the market and damaging investor confidence. This regulatory ambiguity makes it difficult for institutional investors to enter the XRP market, further undermining its significant rise potential.
Currently, the bearish sentiment in the cryptocurrency market has also put pressure on the price of XRP. Bitcoin is the leader in the cryptocurrency market and has experienced significant adjustments in the past few months, dragging down many altcoins including XRP. This will create a domino effect, where negative sentiment in one cryptocurrency will spread to other cryptocurrencies, further exacerbating the decline.
(DataSource: Christian Encila)
