TL:DR;
- The entire cryptocurrency market went through a massive crash in the past few days, but Ripple’s cross-border token was among the poorest performers.
- Since then, though, XRP has gained roughly 20%, leading to the question of whether it has found its bottom.
XRP Bounces Off
The developments at the start of the business week couldn’t really foresee what would transpire just a few days later. On Monday, Ripple announced that its long-awaited stablecoin will finally see the light of day on the next day (December 17) after it was greenlighted by the NYDFS.
XRP’s price reacted positively to both the announcement and the subsequent launch as its price skyrocketed from $2.35 to a multi-day peak of over $2.7 by Tuesday. After a minor retracement to $2.6, things went sour on Wednesday after the latest US FOMC meeting.
XRP, alongside the rest of the market, plummeted to under $2.25, losing nearly 20% of its value in 36 hours. Although that was already a painful retracement, the landscape worsened on Thursday and Friday as the asset plunged to below $2 for just the third time since December 1.
Thus, Ripple’s token had dumped by 28% from Tuesday to Friday, going from $2.72 to $1.96. The bulls finally stepped up at this point and didn’t allow any further declines. Just the opposite, XRP bounced off and has gained about 20% since then, currently sitting at $2.35.
According to popular X analyst Dark Defender, XRP “double tap on 4-hour charts for both on RSI and Price,” which, alongside the “tremendous bullish pin” on the daily chart, suggests that the asset has already bottomed and is ahead of more gains.
It’s About Perspective
During the lows, many crypto commentators started to speculate whether the overall bull cycle had ended. After all, the entire crypto market cap lost roughly $500 billion in just days at one point.
However, Moon Lambo outlined a different view for those retracements, including XRP’s plunge. The YouTuber talked about having a perspective, as XRP, for instance, stood below $0.5 less than two months ago. Consequently, going from over $2.7 to under $2 is indeed painful, but looking at it on a broader scale, it still shows that the asset is a lot higher than it used to be just weeks ago.
