Ripple’s XRP faced a tumultuous week as its price plummeted 11% to a 15-month low of $0.38 on Friday, exacerbating concerns among investors amidst a broader market decline.
Notably, the crypto asset has shown significant weakness since attempting to recover in mid-March, evidenced by lower lows and lower highs on its daily chart. However, Friday’s decline prompted a flurry of reactions within the crypto community, notably catching the attention of Ripple’s Chief Technology Officer, David Schwartz.
Responding to a tweet from an XRP influencer on his thoughts following XRP’s drop below the $0.40 mark, Schwartz emphasized the practical utility of XRP despite its current market valuation.
“Still costs $1 to buy enough XRP to make a $1 payment,” Schwartz tweeted, underscoring XRP’s efficiency in facilitating transactions regardless of its market price fluctuations. Notably, Schwartz refrained from making direct price predictions but affirmed the intrinsic value of XRP in its role as a payment asset.
Schwartz’s comments come amidst an ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), which have weighed heavily on XRP’s price and market sentiment since December 2020. The SEC’s allegations of XRP being an unregistered security have compounded uncertainties surrounding the coin’s regulatory status, contributing to its prolonged price consolidation.
However, despite Friday’s significant decline, which marked an 89.1% drop from its all-time high of $3.84 several years ago, supporters within the XRP community remain optimistic. Brent Hill, a staunch member of the community, expressed confidence in XRP’s resilience, suggesting that the current downturn could present a strategic buying opportunity for investors.
“In times like these, it’s important to stay grounded and view dips as rare opportunities to accumulate,” Hill tweeted, echoing sentiments shared by other community members who see potential long-term gains amid short-term market turbulence.
Analysts also weighed in on XRP’s price movements, with some pointing to historical patterns where significant dips preceded substantial gains in the past.
DarkDefender, followed by 106,000 users on X, highlighted that XRP tapped a “critical support level” at $0.3917, which could signal a price turnaround if it holds above. He identified this level as the ‘Point of Control’ (POC) (Green Dotted Line), indicating it has been a central point for trading activity since 2014.
Furthermore, DarkDefender, who recently forecasted an imminent “God candle” for XRP, highlighted a consistent pattern observed from 2014 to 2017. This suggests the crypto asset could rally by approximately 6,200% in the next bull run, potentially reaching around $26 based on the current market price of XRP.
Another analyst, “LUDXRPFLR,” projected that XRP could surge to $70 upon breaking out of its current consolidation phase within a weekly symmetrical triangle, emphasizing substantial potential price targets ahead.
At press time, XRP was trading at $0.42, recovering slightly after the Friday morning dip but still reflecting a 5% decline over the past 24 hours.