As a seasoned analyst with over two decades of experience in the financial markets under my belt, I find myself standing at a crossroads when it comes to XRP. On one hand, I see a coin that is backed by a major player like Ripple Labs and has a significant market cap and daily trading volume. On the other, I see a crypto asset that seems to be closely tied to Bitcoin’s price action and is currently on the brink of further capitulation due to bearish sentiments in the market.
In the face of growing apprehension over potential crypto sell-offs in the near future, the value of XRP – supported by Ripple Labs – decreased approximately 5% over the past week, trading at around 53 cents during early trading hours in New York on Friday. This large-market-cap altcoin, worth roughly $53.5 billion and with an average daily trading volume of about $1.1 billion, could see further price drops if Bitcoin (BTC) maintains its bearish trend.
In addition, it’s worth noting that the value of altcoins has generally followed Bitcoin’s price trends recently. If Bitcoin drops below $50,000 in the near future due to increased fear of a sell-off in September, XRP may dip back down towards 44 cents as support before potentially recovering by the end of Q4.
Looking at the technical side of things, it’s possible that the price of XRP could bounce back from its current support and surge towards a new record high in the short term. Additionally, we’ve noticed that the Weekly Relative Strength Index (RSI) has been staying above the 50 mark recently.
XRP Whales Capitulate
Because there aren’t any obvious short-term indicators for XRP price movements, data from the blockchain suggests that larger investors are leaving the market. Additionally, some investors might be growing concerned about Ripple selling XRP into the open market through its associated exchanges. On a recent Friday, Ripple transferred 100 million XRP, valued at approximately $54 million, to an unidentified destination.
🚨 🚨 🚨 100,000,000 #XRP (54,594,473 USD) transferred from #Ripple to unknown wallet
— Whale Alert (@whale_alert) September 6, 2024
Over the past few days, several large XRP investors have been observed transferring substantial amounts of XRP to exchanges such as Bitso, Binance, and Bitstamp. In just the last 24 hours, approximately $75 million in XRP has been deposited onto Bitso and Bitstamp by various big-time investors.
The significant rise in XRP deposits is often seen as a sign of pessimistic market sentiment, potentially intensifying the struggle for small buyers.
Ripple Natures Web3 Market
Following the resolution of the legal dispute with the U.S. SEC, Ripple is speeding up its roadmap for XRP Ledger (XRPL) development. The company has unveiled intentions to enhance the XRPL network’s capabilities, incorporating support for smart contracts and web3 standards. Furthermore, they aim to establish an Ethereum Virtual Machine (EVM) chain as well.
Option A: The organization is trial-running a digital currency tied to traditional fiat money on the XRPL system to streamline its international payment transactions. Moreover, with more initiatives underway, Ripple will remain a crucial part of the web3 sector, not just in the U.S., but worldwide.
Market Picture
In its capacity as a significant U.S.-based blockchain corporation, Ripple remains instrumental in the forthcoming elections by providing financial backing and endorsements. The company has already funneled millions of dollars into the Political Action Committee (PAC) known as Fairshake, which advocates for candidates who are sympathetic to the crypto sector.
Currently, the company is working diligently to wrap up the payment arrangement with the U.S. Securities and Exchange Commission, following the court’s decision on the case last month.
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2024-09-06 16:09