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Critical Warning for Ripple Investors: Is XRP Poised to Drop 50%?

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TL;DR

  • Ripple won the four-year legal battle against the SEC, expects an XRP ETF in the States, and a potential IPO in the country – but is the native token about to drop?
  • A popular analyst with over 130,000 followers on X suggested that the trend might have changed.

From Good to Better

Everything seems to be going Ripple’s way as of recently. After the US presidential elections, the entire landscape in the States changed for the better, and being situated there and sued by the local securities regulator for four years, Ripple was among the biggest beneficiaries.

The native token’s name was even mentioned by the new US president to be included in the country’s strategic crypto reserve. Reports emerged that the same regulator that sued the company for selling an unregistered security in the form of XRP has now contemplated classifying it as a commodity.

And to top it all off, just a few weeks after that, Ripple’s CEO Brad Garlinghouse declared a victory in the aforementioned legal case against the SEC. All eyes are now on the potential approval of an XRP ETF, which could complete a stellar year for Ripple and its community.

All of that sounds like good news, right? Well, XRP’s price indeed went on a spectacular run after the elections. However, it failed to breach its 2018 all-time high despite matching it in January and has since fallen by 30% in spite of all the positive developments mentioned above.

This points to a classic ‘sell-the-news‘ moment for XRP, which rallied on the hype of regulatory changes and closure in the SEC case but failed to materialize on the actual changes and victory in the lawsuit.

Is XRP About to Drop?

Unlike the overall bullish sentiment and the multiple mind-blowing price predictions for XRP’s future, Ali Martinez outlined a highly controversial take that foresees a substantial crash for the asset.

He believes the recent price pump-and-dump by XRP has created a head-and-shoulders pattern that could result in an immediate correction of up to 50%. If it materializes, the fourth-largest digital asset could plummet toward $1.25.

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Cryptocurrency

Bitcoin Stalls, Altcoins Move: This Week’s Top Gainers and Losers (Weekend Watch)

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Although it went through some volatility in the past seven days, bitcoin’s price actually stands at the same spot as it did last Sunday.

Many altcoins have produced bigger moves, as ETH has bounced above $2,000 once again, while DOGE is close to breaking below $0.17.

BTC Stalls at $84K

As the chart on the bottom of this article will show, BTC’s price stood at $84,000 last Sunday before it headed south on Monday and later on Tuesday. The weekly bottom came at just over $81,000 at the time as traders were preparing for the conclusion of the FOMC meeting on Wednesday.

Once it became known that the Fed will not change the interest rates again, BTC faced some volatility but ultimately shot up to a multi-week peak of over $87,000 during Thursday morning’s Asian trading session.

However, this was short-lived, and the bears pushed the asset south later on Thursday and Friday. The biggest drop at the time came with a slide to $83,000. Nevertheless, BTC managed to defend that level and has returned to just over $84,000, as mentioned above. The weekend has been quite dull, with little to no movements.

Its market cap has remained still at $1.670 trillion, while its dominance over the alts has been reduced this week to 58.3%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

ETH Above $2K

The market moves over the past day have been lacking, so we will focus on the weekly performances. Ethereum is actually up by over 4%, which has helped it jump past the coveted $2,000 mark. Tron and Toncoin have popped up as the top gainers from the larger-cap alts, surging by 9% and 6.5%, respectively.

UNI, APT, KBT, AAVE, GT, and HYPE lead the way from the mid-cap alts. In contrast, Pi Network’s PI token has plummeted by over 32% since last Sunday to $1.

Solana, Cardnao, and Dogecoin are also in the red from the larger-cap alts, with losses of up to 4%.

The total crypto market cap is essentially at the same spot as yesterday at $2.870 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto
Cryptocurrency Market Overview. Source: QuantifyCrypto
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Cryptocurrency

Good News for Ripple (XRP) and Cardano (ADA) Investors: Details

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TL;DR

  • Although both ADA and XRP are down on a weekly scale, their performance could reverse in the short term, as suggested by a popular metric that has flashed a buy signal.
  • Interestingly, the projects behind both assets have been linked in the past and are expected to announce a joint venture soon.

ada_v_xrp_cb

The metric in question, brought by popular crypto analyst Ali Martinez, is the TD Sequential, which showcases whether an asset has reached an exhaustion point in either direction.

For XRP, the indicator has flashed a buy signal on the 4-hour chart, which could suggest “the start of a short-term rebound,” said Martinez.

Ripple’s cross-border token experienced a sharp and brief uptick earlier this week when company CEO Brad Garlinghouse announced a victory in the legal case against the SEC. XRP went from $2.3 to $2.6 within an hour or so but failed to keep the momentum up and has retraced to under $2.4 now.

The same indicator posted a similar buy signal when it came down to ADA, according to the 4-hour chart, showing that a rebound could be on the horizon.

ADA has struggled in the past month or so, losing over 10% of its value and currently struggling to remain above $0.7. Previously, Martinez said the asset could skyrocket to $2, but it has to close above $1.2 on the daily chart, which seems like a distant dream now.

XRP and ADA have been linked on numerous occasions in the past several months. US President Trump mentioned them, alongside SOL, ETH, and BTC, in regard to the suggested strategic crypto reserve in the country.

Additionally, Charles Hoskinson and Ripple execs have been exchanging kind words since the US elections, hinting on multiple occasions about a potential collaboration between the two parties. However, nothing official has been made public yet.

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Cryptocurrency

Ripple News Today

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Woes of insider trading, some technical warnings for XRP’s price, amid a number of other interesting developments for Ripple – news that you can’t miss.

Was there XRP insider trading prior to CEO announement of SEC victory?

According to a recent research by Santiment, large XRP wallets inccreased their holdings by around 6.5% in the two months leading up to the announcement that the SEC had dropped its appeal against the company.

In addition to that, this period also saw a sixfold increase in unique wallet activity on the Ripple network, which contrasts wit user outflows on other blockchains.

However, it’s a stretch to say that there was insider trading, because the news was widely anticipated as some experts even said that it was priced in ever since Donald Trump won the elections in November last year.

Time to short XRP?

Some are of the opinion that the XRP token might as well be overvalued, given that a lot of the catalysts for a positive price move have already happened, begging the question if it’s time to short it.

Ripple essentially “won” the lawsuit against the US Securities and Exchange Commission, although they still have to pay a hefty fine and they’ve stated that they will be contesting that. However, the Commission won’t carry the motion further, which is good enough.

At the same time, hightened social media activity around XRP has prompted some analysts to believe that it might be a good opportunity for contrarian investors to consider shorting the cryptocurrency.

XRP price to drop by 50%?

Ali Martinez, a well-known crypto analyst with hundreds of thousnads of followers on X, recently posted a controversial take on the XRP price, predicting a substantial crash.

According to him, the recent pump and dump in XRP has essentially created a very popular technical pattern known as head-and-shoulders. If it plays out, this could result in a 50% dump in the asset’s price, driving it down toward $1.25.

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