XRP experienced a surge following Ripple Labs’ recent legal victory against the US Securities and Exchange Commission, a partial victory. Nevertheless, the pace of this rebound has slowed in recent weeks, met notable resistance and started a downward trajectory.
With the latest data from CoinGecko, the XRP value registers at $0.658512. This shows a contraction of 1.1% over the previous 24 hours and a remarkable seven-day decline of 7.4%.
During the height of the price surge following Ripple Labs’ legal breakthrough, the coin encountered a rejection near the $0.95 threshold. This particular zone mirrors the level it reached in March 2022 during its bearish decline.
This raises the question of whether XRP is retracing its steps to an earlier range or if this is just a temporary pullback within a sustained uptrend.
XRP dampening sentiment
U.S. District Judge Jed Rakoff, further influencing prevailing sentiment around XRP, has overturned the approach of last month’s ruling regarding the SEC’s lawsuit against Ripple Labs.
According to a XRP price analysis, the cryptocurrency has peaked and is now on the verge of revisiting its previous resistance level. Nevertheless, several crucial factors require prior consideration.
XRP is currently trading at the upper threshold of the vast Bollinger Bands. While this indicates the potential for a retracement, it also means heightened volatility, indicating that an impending pullback could manifest itself as particularly severe.
XRP price at $0.65 on the daily chart: TradingView.com
In addition, the stochastic RSI illustrates that XRP has risen to the overbought threshold of 80. This suggests that a corrective pullback is likely as the market’s purchasing power is declining.
Traders are turning to new currency as an alternative
Amid the recent challenges facing XRP, many traders have shifted their focus to an emerging alternative: XRP20. This new option has attracted attention for its modest market cap and unique advantages that differentiate it from the original XRP coin.
According to insights shared by analyst Jacob Bury, XRP20 has significant potential for a price increase, taking advantage of the ongoing situation with XRP. The conventional XRP project has drawn criticism for its centralized nature and over-the-counter XRP sales by its founders.
XRP20, on the other hand, stands out as a wholly owned community venture. It has allocated 40% of its tokens for presale, another 40% for staking rewards, reserved 10% for DEX liquidity and plans to burn the remaining 10%. The coin is not affiliated with Ripple, XRP or their ecosystem, the website says.
One of the distinguishing features of XRP20 lies in its extensive marketing performance. The project has received notable attention from several prominent media outlets, contributing to a successful presale round that raised a substantial $300,000 in two days. This rapid fundraising underscores the growing interest and enthusiasm surrounding the coin within the trading community.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
