Ripple’s cross-border token, commonly known as XRP, experienced a significant decline during the recent market-wide meltdown. Its price plummeted from over $2.7 to under $2 within just a few days, marking a steep loss for investors who held onto their assets throughout this period. Despite this drastic drop, the asset has partially recovered and currently hovers around the $2 mark.
The beginning of the business week started on a positive note for XRP enthusiasts as the company behind it announced on Monday that their highly anticipated stablecoin would finally go live for trading the very next day. As a result, XRP saw a significant surge in value, climbing from under $2.4 to above $2.7 by the time the official launch date arrived. Unfortunately, this uptrend proved short-lived, and the broader market’s collapse caused XRP to plunge by an astonishing 28%, dropping from its local peak to just $1.96 within hours.
However, despite this setback, several prominent investors known as “whales” took advantage of the situation by accumulating more XRP tokens during this period of low prices. This buying pressure eventually led to a modest recovery in the token’s value, pushing it back up towards the $2 mark where it currently hovers around.
According to well-respected crypto analyst Ali Martinez, the $2.20 level holds particular significance for XRP’s future price movements. If the token manages to sustain itself above this mark, it could potentially resume its recent bullish trends and aim towards reclaiming the $2.70 resistance level. Conversely, breaking below $2.20 could lead to a further decline in value, possibly even dipping back down towards $1.96 – a critical psychological barrier for investors.
While XRP briefly slipped below the $2.20 mark earlier today, it managed to find some support and bounce back momentarily. The coming days will prove crucial in determining how XRP performs throughout the remainder of the year and whether there may still be room for a “Santa Claus rally,” as many had hoped. With its latest correction, XRP’s market capitalization has fallen back below $130 billion, losing its coveted spot as the third-largest cryptocurrency by market cap to Tether (USDT), which currently boasts a market cap hovering around $140 billion.
Source
Source: cryptopotato.com
