CryptocurrencyXRP Sinking? Why Altcoin's Price Continues Downward Plunge

XRP Sinking? Why Altcoin’s Price Continues Downward Plunge

The once-booming cryptocurrency Ripple (XRP) finds itself in a precarious position. The past month has been marked by a significant drop in XRP’s value, leaving investors and analysts in a state of flux.

While some fear a continued decline, others see potential for a comeback, with technical indicators hinting at a possible reversal of fortune. However, the road ahead for XRP remains shrouded in uncertainty, with the ongoing legal battle with the SEC and broader market sentiment playing a crucial role.

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A Downturn And Dampened Enthusiasm

The last few weeks have been a rough ride for XRP holders. The cryptocurrency, which once held the distinction of being the only one with apparent regulatory approval in the United States, has shed over 5% in the last week alone.

The price dipped as low as $0.49 before recovering slightly to its current position around $0.50. This downtrend has coincided with a noticeable dampening of enthusiasm within the crypto community. Discussions about XRP have dwindled, and the usual “bullish” fervor seems to have gone quiet.

Technical Signals And Expert Opinions

Despite the gloomy outlook, there are some glimmers of hope for XRP. Analysts point to technical indicators on TradingView that suggest a potential uptrend in the making.

The chart shows a series of “higher lows and higher highs,” a pattern typically associated with bullish momentum. Additionally, the $0.50 mark seems to be acting as a support level. Each time the price dips close to this point, it rebounds slightly, indicating that some investors see it as an attractive entry point.

This bullish sentiment is echoed by some experts. Dark Defender, a prominent crypto analyst, remains optimistic about XRP’s prospects for 2024, predicting a surge to $1.80 before year’s end. A recent poll conducted by Egrag Crypto among nearly 4,000 crypto community members also revealed mixed feelings.

While a significant majority (61%) expressed optimism about XRP’s ability to participate in an upcoming bull run, a sizable minority (40%) remained apprehensive.

Total crypto market cap currently at $2.2 trillion. Chart: TradingView

Clouds Over XRP: The Looming Legal Battle

XRP’s path forward is far from certain. The ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) continues to cast a long shadow. The lawsuit, which centers around whether XRP is a security, has created uncertainty in the market, hindering investor confidence.

This regulatory ambiguity makes it difficult for institutional investors to enter the XRP market, further dampening its potential for significant growth.

XRP price down in the weekly timeframe. Source: Coingecko

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Market Sentiment And Ripple Effect

The broader bearish sentiment currently gripping the crypto market also adds pressure to XRP’s price. Bitcoin, the bellwether of the cryptocurrency market, has seen a significant correction in recent months, dragging many altcoins, including XRP, down with it. This creates a domino effect, where negative sentiment in one cryptocurrency bleeds over to others, further exacerbating the decline.

Featured image from Getty Images, chart from TradingView

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