The recent Ripple hack on January 31, 2024, involving around 213 million XRP tokens worth $112.5 million, alongside the ongoing price momentum of XRP, suggests a clear bearish trend. The cryptocurrency market is currently struggling to gain momentum, and this incident has contributed to a negative view of the rapidly evolving landscape.
XRP hack’s impact on investor sentiment
XRP is currently facing heavy selling pressure from both investors and crypto whales, further intensifying its bearish outlook. On January 22, 2024, XRP broke a strong trendline on a daily time frame, which it had been following since January 2023. With this recent breakdown and the $112.5 million hack, it appears that XRP may reach the $0.4 level in the coming days.
However, the current sentiment among investors in the crypto community, particularly for XRP, is bearish. On February 1, 2024, a member of the crypto community posted on X (previously Twitter), stating that Either XRP will significantly increase in value during the next market upswing due to its utility, or if the utility doesn’t matter, XRP could potentially become worthless over time.
This statement highlights the fact that despite a significant victory over the Securities and Exchange Commission (SEC), Ripple’s XRP has not witnessed any substantial upward movement, unlike other cryptocurrencies that have experienced significant gains.
As per the post, he also highlighted, “I think everyone knows how I’ve placed my bet, though. When XRP was $2.00 in April 2021, it didn’t matter to me. When XRP was $0.10 in March 2020, it didn’t matter to me.” The extreme volatility on its own is not an indicator of long-term viability.
As of now, XRP is trading near $0.49, experiencing a 4% downside momentum in the last 24 hours. Looking at XRP over a more extended period, it has seen a 3% downside momentum in the last 7 days and a significant 20% decline in the last 30 days. This data indicates a waning interest from both investors and crypto whales in Ripple’s XRP.
XRP technical analysis and upcoming levels
Expert technical analysis suggests that XRP on a daily time frame is extremely bearish. Because of the following reasons:
- The first XRP on a daily time frame gives a breakdown and also retested its breakdown level and confirms its bearish move.
- XRP on a daily time frame getting a bearish golden crossover.
- XRP on the weekly time frame trading below 200 Exponential Moving Average (EMA).
These technical indicators, coupled with bearish price action, point to a pessimistic outlook for XRP. Traders and investors need to be aware that in the coming days, XRP may potentially reach the $0.42 level.
