XRP Retests $0.50; Should You Wait for Bulls?
XRP and its SEC lawsuit impact the overall price of the token, and investors keep distancing from XRP tokens. Even if XRP is labeled as a security, the underlying technology that rivals the payment speeds of Mastercard and Visa could be a breakthrough to transfer digital payments.
Recent FED reports indicate that increasing inflation numbers and larger stablecoins are the key factors threatening the economy. Currently, markets have smart blockchains, payment blockchain tokens, and stablecoins as the three main types of coins.
XRP was on a bullish run before the bearish market engulfed this crypto token pushing its value significantly down. XRP stands at 6th position in terms of the market capitalization of $21,301,543,532, with just 48% of its tokens in market supply.
Since this value is not pegged to any asset or performance and is instead driven by simple supply and demand metrics, the rising payments number could be a beneficial factor for XRP in the coming days.
XRP falls below the 100 DMA curve after failing to overcome the 200 DMA curve resistance. This decline, combined with the uncertainty of XRP’s SEC lawsuit, has forced XRP to undergo selling pressure. Visit here to know how long will the selling pressure continue and future XRP predictions!
XRP price trend in recent months has been chiefly consolidative, but things started to worsen as XRP breached its 100 DMA curve in April 2022. The indication for a possible sell-off was evident but not clear since RSI was mostly trading in the danger zones for the past few weeks.
The sell-off pushed XRP below $0.50 for a few hours on May 09, when XRP lost 14% of its market value. Hence, with a new low, it is now available for a discounted price compared to a month ago.
Although transaction volumes are declining, the actual users of XRP are benefitted only when the price of the XRP token is lesser since they are more concerned with the successful completion of their transaction using the XRP token rather than its price.
A non-security label would help Ripple scale its payments ecosystem without the risk of federal trials. RSI is showing initial signs of recovery, but XRP price is still at dangerous levels for bulk investments.
Alternatively, buyers should try to average out their holding pattern. $0.20 was the lowest value of 2021, and the same can be seen again if the price fall continues for XRP.
