August 30, 2023
In July, Ripple Labs received a landmark court ruling by the U.S. Securities and Exchanges Commission (SEC). The positive news sent XRP prices skyrocketing as investors celebrated the win over the SEC and its supposed legitimacy in U.S. markets. However, bearish sentiment is starting to creep in on the broader crypto market.
Does this mean XRP will erase its recent gains or will it ride the victory wave to new heights? We’ll cover all that and more in our latest “coin of the week” article. “
Even though Judge Torres ruled in favor of Ripple labs - saying that XRP is not a security - XRP’s price has been in a downtrend.
On July 14th, XRP price jumped $.47 to $.80 (~70% increase). Yet, in the 30 days following that massive spike, XRP has crept back down to around $.55 ( -24.13%).
There are three primary reasons for this price decline:
This Monday, during the early Asian trading hours, a quick-moving 50-day single moving average (SMA) crossed below the slow-moving 200-day SMA. This event, known as a “death cross” amongst crypto traders, is a clear call to sell XRP.
Further supporting the death cross is XRP’s Relative Strength Index (RSI). This technical indicator began moving in the negative direction showing XRP’s downtrend is still strong and unlikely to change in the short term.
While the crypto market is in recovery after its most recent micro-crash, the overall market sentiment is still somewhat fearful. While some coins can experience bullish periods during a bear market, it is rare. At the moment, XRP investors seem to be following the market trend and are hesitant to buy XRP at this time until conditions improve.
There is a silver lining to all the above news. New on-chain data suggests that XRP’s price is undervalued. While the bearish sentiment across the crypto market is preventing an XRP price breakout at the moment, it is not out of the question in the long term.
Analyzing Santiment’s Network Value to Transaction Volume (NVT), one can look at the underlying transactional activity on a given blockchain network. XRP’s NVT ratio increased a shocking 340% from August 18th to August 24th.
This suggests that there is consistent activity on the Ripple blockchain despite the price going down.
It’s reasons like this that long-term investors are still stashing their XRP bags and holding out for a momentum shift in the future. When that shift happens is anyone’s guess but some analysts predict it could be a rebound of 20% - 25%.
As we have said many times before in YouHodler history, “volatility equals opportunity.” All financial markets move in waves. Many people think you can only profit from the positive waves. However, there are just as many opportunities to profit in the downward waves as well.
YouHodler makes this easier than ever with our MultiHODL feature. Open up an XRP position in two directions (up or down) to capitalize on this volatility. We’ve already seen plenty of sharp XRP movements in the past month and more are surely to come.
So try Multi HODL and start testing out your trading strategies today. MultiHODL also recently integrated TradingView charts in the features so you can easily utilize technical indicators and conduct in-depth analysis on XRP and all our favorite cryptocurrencies.
Disclaimer: The content should not be construed as investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is made available to you for information and/or education purposes only.
You should take independent investment advice from a professional in connection with, or independently research and verify any information that you find in the article and wish to rely upon.
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YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.