If the cryptocurrency market, as a whole, has been experiencing a very strong downward trend for the past few weeks, some digital assets could suffer the full consequences. According to analysts, XRP will be one of the most affected cryptocurrencies. They predict that it will register a drop of more than 40% by the end of July.
The price of ripple (XRP) could go down
Considering the charts relating to Ripple (XRP), experts have seen that the cryptocurrency is slowly starting to form a technical structure after hitting its high of $1.98 in the month of April 2021. This is its highest high. history up to the date of writing this article. That said, it so happens that since then the token has been following a downtrend within a “fork”.
At present, Ripple’s movement corresponds to that of a descending triangle and this movement may not come to an end for a few months. In any case, the downtrend could be extend for several months. Concretely, the price of the digital asset could go down to 0.18 dollars, which would correspond to a reduction of nearly 40% compared to its price on 1er June.
Consequences of bearish momentum
XRP’s bearish setup is far from isolated. On the contrary, it is part of a general trend of decreasing digital asset prices. The proof is that some tokens are currently trading at prices that are nearly 90% below their all-time high over the past year. This situation started in May with the collapse of the Terra (LUNA) blockchain.
Several companies specializing in the cryptocurrency sector have also felt the consequences of the general decline. For example, Celsius Network, one of the largest cryptocurrency platforms, has interrupted unexpectedly the cryptocurrency withdrawals in June because of “extreme market conditions”. The Three Arow Capital firm found itself faced with irrecoverable debts. For its part, Babel Finance followed the example of Celsius Network by stopping withdrawals.
If the chances of XRP continuing its downtrend momentum are high, it is also because of the interest rate hike of 0.75% of the Federal Reserve on June 15. In fact, all cryptocurrencies are affected by this situation which could prove to be very difficult.
Like many cryptocurrencies, ripple (XRP) will suffer the consequences of the general price decline in the digital asset market. Unfortunately, it looks like this downtrend will continue.
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