Essential Insights
TL;DR
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Price Movement: XRP is trading near $3.00 after hitting a resistance at $3.32 and showing support at $2.90. Recent selloff attributed to stop-loss liquidations and institutional selling.
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On-Chain Activity: The XRP Ledger’s NVT ratio has fallen nearly 80%, indicating increased transaction activity despite the price downturn, suggesting healthier on-chain usage.
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Regulatory Uncertainty: The SEC has postponed decisions on multiple XRP ETF applications, including Nasdaq’s CoinShares, extending investor uncertainty until October 23.
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Market Range: XRP has fluctuated between $2.95 and $3.10 over the last 24 hours, down nearly 5% for the week, indicating a downtrend after failing to maintain levels above $3.32.
Ripple Token Faces Pressure as Key Resistance Lost: Analyst Insights
Ripple’s XRP trades around $3.00 after facing a setback at $3.32. Analysts believe the token could drop further, with a crucial support level now in play at $2.90.
On Monday, XRP closed near $3.00, after erasing earlier gains. Heavy trading volumes accompanied a late selloff, contributing to the decline. Analysts cite stop-loss liquidations and potential institutional selling as driving factors behind the price drop.
Currently, XRP fluctuates between $2.95 and $3.10. Despite a slight uptick of just over 1% in 24 hours, the token remains down nearly 5% for the week. Notably, XRP is 18% below its record high of $3.65 set on July 18.
Analyst BitGuru highlighted the token’s downtrend. The failure to maintain above $3.32 indicates lower highs and lower lows, with the asset now testing the critical $3.00 support.
“If buyers can defend that level, a rebound toward $3.20 looks possible,” BitGuru stated. However, failure to hold $3.00 might push the price down to $2.90. A further decline could see XRP move toward $2.70 to $2.80, where it previously saw demand in July.
Despite this pressure, on-chain data reveals a silver lining. The XRP Ledger’s NVT ratio has plummeted nearly 80%, indicating sharper transaction activity against its market value. The increased network activity suggests that XRP sees robust usage on-chain, which is typically a positive sign for overall health.
Meanwhile, the U.S. Securities and Exchange Commission’s decision to postpone its ruling on several XRP exchange-traded fund (ETF) applications, including Nasdaq’s CoinShares proposal, adds to the uncertainty. Originally due on August 24, the decision is now pushed to October 23, forcing investors to await further developments on XRP-linked products.
Ripple continues to face challenges, yet these developments highlight a complex landscape where usage may strengthen, even amid price fluctuations.
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