In a new edition of this week’s downward trend, we have the altcoin Ripple (XRP) which overtook Ethereum and became the second largest cryptocurrency by market cap – and its recent price drop which went viral everywhere in the crypto news.
The intense downtrend finally took a toll on Ripple, even though it seemed like the cryptocurrency is resistant to it. Ripple, which is now the second most valuable cryptocurrency, is no longer up in value on a monthly basis. Over the past 30 days, XRP maintained the $0.5 level relatively well with minimized losses – during a period when Bitcoin and other top coins fell by 20% and even more.
If you are asking yourself what was the primary reason for Ripple’s drop, the truth is that XRP is a liquidity network that provides major banks and financial institutions the ability to move cross-border payments with low fees. Hence, a large supply of XRP is crucial for the Ripple blockchain network to operate.
This week, around $16 million was removed from the Ripple Distribution wallet to an unknown one, injecting more XRP into the market. Over the past 12 hours, XRP fell from $0.48 to $0.41 and then recovered at the $0.43 support level.
It is entirely possible (given that XRP has been successful in maintaining the $0.4 support level) – that this increase of the supply of XRP in circulation affected the short-term price trend of XRP.
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“We’ve had some bullish moves on ETH, BTC, and altcoins over the last 2 weeks. Is the bear market over? Maybe, the fact of the matter is we are going up. Traders must see PA for what it is and can change bias quickly. If you have been stuck with a bearish lense you are missing out.’’Over the past few months, Bitcoin and the other cryptocurrencies show similar movements. BTC showed weeks of stability but it later plunged by 10 percent. However, the current stability is not a guarantee for improved future performance. The crypto market shows a period of stability for the past couple of weeks. Ethereum made gains during today’s trading session. After the 12 percent surge in the price of ETH, crypto trader DonAlt said:
“Well, this is a proper moon. Not a big liquid spike but rather a nice controlled walk up. Didn’t expect quite this much action into the weekend but I’m not complaining. ETH as the top gainer on BitMEX. Right at resistance here – will be interesting if it can break through or not.”
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