After facing challenges to break through the resistance range between 60 and 63 cents since mid-July, Ripple-backed XRP has indicated further short-term bearish trends. With a fully diluted valuation of approximately $54.3 billion and an average daily trading volume around $1 billion, the large-cap altcoin experienced a decline of about 4 percent this week, trading at approximately 54 cents on Friday during the early European session.
Nevertheless, the downturn of XRP against major pairs, including Bitcoin and the US dollar, appears to be nearing its conclusion. Moreover, the anticipation of the U.S. Federal Reserve initiating interest rate cuts in the fourth quarter has sparked expectations of a bullish sentiment within the crypto industry.
XRP Whales Increase Market Selloff
The entire cryptocurrency market has experienced bearish sentiment similar to the stock market in recent years. Despite the resolution of the Ripple vs. SEC case, on-chain data reveals that more whales have been offloading their holdings into the secondary market. For instance, Ripple transferred 100 million XRP, valued at over $54 million, to an unknown address. Additionally, several other top XRP investors deposited substantial amounts to Bitso and Bitstamp exchanges earlier today.
In the midst of these activities, Ripple has faced criticism for consistently selling XRP on a monthly basis to fund its operations. In response, Ripple has announced several plans to develop the XRP Ledger (XRPL) into a Web3 and smart contract hub in the near future.
Midterm Expectations
Recently, the price of XRP has been fluctuating within the apex of a macro triangular pattern, suggesting an imminent breakout in the near term. Despite this, the altcoin has signaled midterm bearish sentiment, making a retest of the major support level around 44 cents highly probable.
However, a rebound and consistent close above 65 cents would invalidate the bearish sentiment, paving the way for a new macro parabolic bull rally. As the market continues to evolve, investors and traders alike should closely monitor these critical levels to make informed decisions.
In conclusion, while XRP has shown signs of short-term bearish trends, the potential for a midterm breakout remains on the horizon. With the possible initiation of interest rate cuts by the U.S. Federal Reserve and Ripple’s ongoing efforts to enhance the XRPL ecosystem, the future of XRP may hold promising opportunities for growth and recovery.
