The rise and fall of XRP in the cryptocurrency market came as a surprise, because bearish sentiment in the larger market overwhelmed positive fundamentals. Due to this abrupt change, traders are rethinking their tactics and choosing profit-taking over the more conventional buy-and-hold strategy.
Just a few months ago, XRP, one of the largest tokens by market capitalization, soared to impressive heights, fueled by positive news from Ripple Labs’ landmark court ruling against the U.S. Securities and Exchange Commission (SEC) in July. The token reached a yearly high of 83 cents on July 20, riding the waves of optimism generated by this legal victory.
However, recent data tells a different tale. XRP’s value plummeted to 50 cents, a staggering 30% drop over a 30-day period, erasing nearly all the gains it had accrued following the SEC ruling. This downward spiral over the past week, a 14% decrease, has left investors questioning the trajectory of the once-promising token.
The SEC’s lawsuit against Ripple alleging the sale of unregistered securities had kept the cryptocurrency community on edge for quite some time. Despite Ripple’s efforts to distance itself from XRP, the legal battle had a notable impact on the token’s prices. As the court case progressed, the volatile nature of XRP’s value became evident, with any developments in the legal proceedings causing significant fluctuations.
Adding to the drama was the revelation of a sudden accumulation phase post the July court victory. Whales, those large holders of cryptocurrencies, were observed acquiring a substantial 360 million XRP during a 12% price drop between June 22 and June 28. These strategic players capitalized on the price dip, amassing approximately $170 million worth of XRP. This pattern of accumulation continued, with XRP whales gathering a remarkable 1.1 billion XRP, valued at around $570 million, since February.
Just as the market was trying to absorb the implications of these accumulation trends, a prominent Wells Fargo expert, Shannon Thorp, entered the scene. Fresh off the groundbreaking Ripple vs SEC court ruling, Thorp predicted an astonishing price range for XRP, foreseeing prices to surge from $100 to an astounding $500 within just four to seven months. Should this prophecy come true, investors could potentially reap unprecedented profits, ranging from an impressive 14,200% to a jaw-dropping 71,400%, based on the current XRP price.
It is clear from the way the cryptocurrency community is processing these recent developments that XRP’s path has been filled with both highs and lows. The story of XRP serves as a reminder of how erratic the cryptocurrency market is, from the thrill of the court victory’s ascent to the present market attitude driving down its value. Only time will tell if the token can once more overcome the odds and make up lost ground.