Ripple’s XRP Faces Dramatic Turbulence Amid Major Crypto Market Correction

Ripple’s XRP Faces Turbulence Amid Crypto Correction

Supported by Ripple Labs, XRP has suffered greatly as a result of the recent correction in the bitcoin market spurred on by noteworthy news on Wednesday. With an average daily trading volume of almost $2 billion and a fully diluted valuation of almost $60 billion, this large-cap alternative bitcoin has dropped almost 8% over the past twenty-24 hours. XRP cost about sixty cents at the start of the Thursday New York session.

July Performance Highlights

The Ripple community has grounds to celebrate even if there has been a recent drop. XRP showed an amazing surge in July, rising by more than 35 percent. Despite the indecisive weekly closing, XRP was able to recover important support levels including the weekly 50 and 200 Moving Averages (MAs) thanks to this great performance.

Whale Activity and On-Chain Data

📊 XRP Ledger, among one of the best performers in July, has been powered by high on-chain activity. Major whale transaction levels and network growth helped propel the coin's +35% month, and social dominance is now sky-high as the asset has mildly retraced. pic.twitter.com/QS2ZIr0ABz

— Santiment (@santimentfeed) August 1, 2024

XRP’s outstanding performance in July was the result of notable on-chain activity. According to Whale Alert, more than one hundred million XRP was moved out of Binance to unidentified addresses within the past two days. Over the past six years, XRP has been consolidating in a triangle, indicating that whale investors are stockpiling the coin in expectation of a positive exit in not too distant future.

Reasons Behind XRP’s Strength

The Ripple community is waiting impatiently for Judge Analisa Torres’ decision in the continuous lawsuit started by the United States Securities and Exchange Commission (SEC). Recently, the Securities and Exchange Commission (SEC) dropped several cases against bitcoin initiatives including some implying digital assets were securities. Earlier, claiming that selling XRP to institutions had broken securities laws, the Securities and Exchange Commission (SEC) sent Ripple a demand for a fine of almost $102 million.

Cautionary Notes

This chart pattern is a multi-year complex H&S.
If this chart penetrates the lower support line then all @X accounts with XRP initials attached will slowly disappear to never again be seen again pic.twitter.com/tJEJSEvKv8

— Peter Brandt (@PeterLBrandt) August 1, 2024

Experience trader Peter Brandt has advised the XRP community to monitor the Bitcoin pair closely in order to spot any possible head and shoulder (H&S) patterns. The neckline support level set about 0.0000082 BTC has stayed constant over the past six years. Conversely, Brandt advised that a continuous bearish attitude could lead to a notable selloff, so possibly pushing the pair towards 0.00000020 BTC.

Conclusion: Future Prospects and Market Implications

As the legal struggle with the SEC gets near to its end, investors will be closely observing XRP’s price behavior. The result might have major effects on XRP as well as the whole bitcoin market. Whales have lately gathered, suggesting that they are sure about a favorable result; nevertheless, caution is advised about the matter considering the possibility of bearish developments.

Disclaimer

This is just meant to be information; it is not financial or investment advise. Unexpected changes in market conditions mean that before making any financial decisions, one must carefully study and consult a professional.

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