On Monday, XRP jumped 2.57%, the lowest percentage of gains recorded among the top ten crypto assets.
The fourth-largest cryptocurrency by market cap of $4.3 billion, as per Messari is currently trading at $0.157 after crashing to $0.11 a few weeks back during the broad market carnage. The last time XRP was trading at this level was in May 2017.
Those losses had the cryptocurrency down over 97% from its all-time high of $3.92 that was hit during the last bull run in January 2018.
All of this has been despite the San Francisco-based Ripple having partners like MoneyGram and SBI Holdings and the company reducing the sales of the cryptocurrency.
This should have alleviated the selling pressure on the digital asset. But the news of Ripple selling the XRP to its partner MoneyGram that sells it as fast as it receives it along with other partners didn’t work in its favor.
On top of that, not just the crypto market but the global stock markets are seeing record decline due to novel coronavirus. The global pandemic has the investors getting out of risky assets to find safety in cash and bonds and stablecoin in case of the crypto market.
The US Federal Reserve along with other central banks have been injecting billions in the financial market but it isn’t finding its way into the stock market.
Although Bitcoin reacted to the macro event and by extension the crypto market, XRP isn’t really out of the danger yet and could drop further.
According to trader Credible Crypto, the digital asset could very well make its way to below $0.12. XRP is “progressing beautifully” to his over 30% drop target, said the trader. However, at this point, he calls it a buy the dip zone and plans to accumulate the cryptocurrency.
XRP had a clear rejection from an uptrend, forming a short-term top at about $0.16, where it found resistance. As we previously reported, veteran trader Peter Brandt also warned that XRP having white space, the digital asset could go into free fall with not much support available to prop it up.
Livercoin is another trader who is expecting another big drop of 30%. For now, the digital asset has a “strong” hold of 2500 sats support but it might not be for long.
Elsewhere, Intermex will begin testing XRP as a bridge currency later this year in the corridors that it is building out of its network that require on-demand liquidity. Here, they “can use XRP as a kind of a pivot currency to swap US dollars for pesos, 24/7. And it’s early days, but we would expect to be testing that later this year.”
The company, however, is not planning to use RippleNet in its core markets but is looking at using it for several other products.
RippleNet, Tony Lauro, Intermex CFO said, “will enable us to onboard new payers faster than we would if we were doing direct connections to each one.”