Price Analysis

XRP Price Plunge Heavily! Rebound Soon or Risk Further Drop?

The year 2021 has seen a surge in cryptocurrency markets, with currencies like Bitcoin seeing a 500 percent increase. Ripple Labs’ currency, XRP, is one of the most popular cryptocurrencies that surged high this year. The currency’s dramatic rise in recent months has outperformed most forecasts, hitting the $1 mark in April 2021.

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Ripple’s chances of not only dismissing the case and reaching a settlement but also clearing its name, are increasing. The Ripple company recently gained access to court records, which would most likely aid them in identifying SEC loopholes. The lawsuit would be dropped if Ripple could correctly describe its XRP token as “just another cryptocurrency” rather than a defense.

XRP Price Analysis

Also, the perfect inverse correlation that has emerged indicates that money is leaving DOGE and $XRP. This indicates that XRP Price can pump the most in the short term, and that it could be the most benefited from unit bias. For retail traders purchasing XRP at the current price stage, there is a clear narrative.

Furthermore XRP traded at $1.35 level, nearly 4% above the price yesterday and the trade volume has dropped. Of the total inflow into digital assets,233 Million specifically in the last week, $33 Million was directed towards XRP.

It eventually led to assets under management of XRP increasing to $83 million. Institutional investors’ growing acceptance, inflation concerns, and market momentum may all be factors driving this increased inflow. This, combined with XRP’s growing social supremacy, makes it possible that the price will reach $2, allowing the altcoin to retake third place from BNB.

Additionally last week, institutional investments in XRP have doubled. This is the major key which is driving the price higher in the current rally.

The rebound in early April was accompanied by increased volatility. Traders’ confidence in XRP will return if this trend continues. At the time of writing, XRP Price was trading at $1.02.

 

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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