• In the past few days, the entire cryptocurrency market experienced a massive crash, with Ripple's cross-border token being one of the worst performers.

  • However, since then, XRP has risen by about 20%, raising questions: Has it bottomed out?

XRP rebound

The developments earlier this week could not truly anticipate what would happen days later. On Monday, Ripple announced that its long-awaited stablecoin would be listed the next day (December 17) after receiving approval from the New York Department of Financial Services (NYDFS).

XRP's price reacted positively to the announcement and subsequent release, soaring from $2.35 to a multi-day high of over $2.7 on Tuesday. After a slight pullback to $2.6, the situation worsened after the latest U.S. FOMC meeting on Wednesday.

XRP plunged below $2.25 along with other currencies in the market, losing nearly 20% of its value within 36 hours. Although this was already a painful pullback, the situation further worsened on Thursday and Friday as the asset fell below $2 for the third time since December 1.

Thus, Ripple fell by 28% from Tuesday to Friday, dropping from $2.72 to $1.96. Bulls finally stood firm at this point, not allowing further declines. On the contrary, XRP rebounded and has since risen by about 20%, currently at $2.35.

According to renowned X analyst Dark Defender, XRP is "in a double bottom state on both the 4-hour RSI and price," combined with a "huge bullish pin" on the daily chart, indicating that the asset has bottomed out and is expected to rise further.

The key is perspective

During the downturn, many cryptocurrency commentators began to speculate whether the overall bull market cycle had ended. After all, the total cryptocurrency market capitalization once shrank by about $500 billion in just a few days.

However, Moon Lambo has a different perspective on these pullbacks (including the drop in XRP). The YouTuber discussed his views, such as that XRP was below $0.5 less than two months ago. Therefore, dropping from over $2.7 to below $2 is indeed painful, but from a broader perspective, it still indicates that the asset's price is much higher than it was a few weeks ago.