DeutschTurbulence at XRP: The cryptocurrency associated with the fintech company Ripple has fallen by more than ten percent within 24 hours. And yet: Despite the price slump, experts see no reason to panic – on the contrary. Some consider a new all-time high possible, perhaps even soon.
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The XRP token is currently trading at around $3.25. As recently as Friday (July 18), the cryptocurrency had reached an annual high of $3.66 – just a few cents below the previous record value from January 2018 ($3.84). But then the abrupt turnaround: a double-digit decline within a day, triggered without a clearly identifiable trigger.
XRP Price Crashes – but Ripple’s Dream of an All-Time High Lives On
For Lukas Enzersdorfer-Konrad, Deputy CEO of the Bitpanda trading platform, the recent price decline is not the end of the rally – but possibly just a stopover. “Another rise beyond the all-time high would not be surprising if market conditions remain favorable and the capital rotation from Bitcoin continues”, he said in an interview with “Cointelegraph”.
In fact, the broader crypto market has seen a remarkable comeback in recent weeks. Particularly noticeable: Bitcoin’s dominance has fallen by more than five percent, according to data. Capital is increasingly flowing into altcoins – including XRP. The so-called Altcoin Season Index, which measures whether the market currently prefers Bitcoin or Altcoins, has recently switched to “Altcoin Season”.
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“The short-term development of XRP depends heavily on whether this altcoin dynamic continues”, explains Enzersdorfer-Konrad. For XRP, which reacts strongly to sentiment within the market, this is a crucial factor. From a technical point of view, some indicators also give reason for hope. XRP is currently trading above the 50-day average, a sign of a continued intact upward trend. The Relative Strength Index (RSI) has stabilized near the neutral value of 50 – this does not indicate an overvaluation or a sell-off. Investors are in a wait-and-see attitude.
No Trend Reversal, but a Healthy Correction?
Crypto analysts therefore see the recent pullback not as a trend reversal, but as a healthy correction. The well-known analyst Dom, for example, considers an increase in the range of 7 to 10 US dollars to be realistic – provided that the overall market joins in. At the same time, XRP remains highly susceptible to external influences. Regulatory issues and legal disputes in particular – such as the still smoldering dispute with the US Securities and Exchange Commission SEC – have a significant impact on the development of the cryptocurrency.
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“The XRP performance is closely linked to the perception of the altcoin market and regulatory developments”, Enzersdorfer-Konrad continues. The next phase of the XRP rally will depend on whether the capital flows are distributed to other coins or focused on a few. Conclusion: XRP is caught in a field of tension between market psychology, technical signals and macroeconomic impulses. The sudden decline may have made investors nervous – but anyone who looks closely will recognize: The dream of an all-time high is far from over. (mck)
