Ripple’s native token, XRP, faced significant turbulence during the recent market downturn, experiencing a steep decline from its high of over $2.7 to under $2 within just a few days. Despite regaining some ground since then, the digital asset remains precariously balanced at a critical juncture that may dictate whether it continues its upward trend or succumbs to further losses.
The week started on a positive note for XRP investors when the company behind the token announced on Monday that their highly anticipated stablecoin would go live for trading the very next day. As a result, XRP saw a substantial surge, soaring from around $2.4 to above $2.7 by the time the launch event commenced. However, this upswing proved short-lived, and the wider market collapse swiftly dragged the digital asset downwards by nearly 30%, causing it to plummet from its all-time high to trade at just $1.96.
Many prominent players in the crypto space seized upon this momentary weakness to accumulate additional XRP tokens, potentially contributing to the subsequent recovery witnessed by the digital asset over the ensuing hours. Indeed, prices climbed back up to nearly $2.4 by late Tuesday evening before encountering renewed selling pressure that caused them to retreat back towards the $2.2 mark once more.
Popular crypto analyst Ali Martinez highlighted the significance of this particular price level for determining XRP’s near-term price trajectory. If the digital asset manages to sustain itself above $2.2, it may consolidate for a period before attempting another assault on the $2.7 resistance point. Conversely, breaking below this support level could trigger a sharp sell-off that drives prices back towards $1.96 – potentially even lower depending upon market sentiment at the time.
Despite briefly dipping back below $2.2 earlier today, XRP has since rebounded slightly, clinging onto these critical levels ahead of what promises to be a highly volatile holiday season for digital assets across the board. With its market capitalization having fallen back below $130 billion following recent corrections, XRP has also relinquished its spot as the world’s third-largest digital currency by this metric, losing out to Tether’s USDT – currently valued at around $140 billion.
Source
Source: cryptopotato.com
