XRP (Ripple) Price Declines by 22%, But Investors Remain Optimistic for Major Rebound
over 22% to $2.73 on Sunday. However, experienced traders view this significant drop as a potential setup for a larger market move.
XRP plummeted to $2.7340, marking its lowest point since July 13, experiencing a dramatic 22% decline from its peak this year, erasing billions in valuation. Faced with this downturn, XRP was not alone as the entire crypto market went through a turbulent phase. Bitcoin, for example, saw a sharp decline from $123,200 to $112,000, dragging down other cryptocurrencies with it. The catalyst for this market chaos was the announcement of new tariffs by former President Trump, instilling fear in investors. Additionally, discouraging job data revealed only 35,000 monthly job gains, the lowest reported since 2020.
The situation worsened further when Ripple’s co-founder, Chris Larsen, sold over $140 million worth of tokens at the market peak. History has shown that large insider sell-offs rarely contribute positively to market sentiment.
Despite the gloomy market conditions, there is a glimmer of hope for XRP investors as technical indicators point towards a potential resurgence. An analysis of the charts reveals that XRP has formed a classic “cup-and-handle” pattern. In this pattern, XRP reached a low of $1.6173 in April before soaring to $3.6552 by July. The current drop is interpreted as the “handle” formation within this pattern, hinting at a possible upward trend.
Based on technical analysis, XRP is projected to climb to $3.3955 and possibly retest its yearly high of $3.6552. Reinforcing this optimistic outlook are the fundamentals in the market. Polymarket, for instance, indicates an 80% probability of XRP ETF approval, amplifying investor confidence. Moreover, Ripple’s RLUSD stablecoin recently achieved a market cap of $600 million, reflecting a positive growth trajectory for the token.
In conclusion, while the recent market volatility may have unnerved many investors, savvy traders are interpreting the current XRP price drop as an opportunity for a significant rally. With promising technical patterns and strong fundamentals in place, a potential XRP resurgence could be on the horizon.
