Ripple’s native token, XRP, has suffered a significant downturn, shedding more than 5% in the past 24 hours and dampening investor expectations of a swift recovery towards the highly anticipated $3 threshold. As of report time, XRP was trading near $2.50, reflecting weakened market confidence and a sharp decline in daily trade volume, which plummeted by nearly 50%.
This downward trajectory follows a turbulent period for Ripple, exacerbated by a recent 64-minute network outage on February 4. The disruption temporarily halted block production on the Ripple Ledger, impacting over 80,000 XRP transactions. The incident has intensified concerns over the network’s stability, with critics questioning its reliability.
Repeated Outages Fuel Investor Anxiety
This isn’t the first time Ripple has faced major technical setbacks. The blockchain network experienced similar outages in September and November 2024, raising persistent concerns about its dependability. Industry observers argue that such recurring issues undermine investor trust, particularly as Ripple aims to position itself as a leader in cross-border payments and financial solutions.
Notably, Riot Platforms Vice President Pierre Rochard was among the vocal critics of the recent outage, publicly challenging Ripple’s transparency. He called for a detailed post-mortem analysis of the incident, highlighting the growing pressure on Ripple to address its technical shortcomings and reassure investors.
Market-Wide Uncertainty Weighs on XRP
Beyond Ripple’s internal struggles, broader market conditions have also contributed to XRP’s decline. The lingering impact of the controversial Trump tariff has kept investors cautious, limiting liquidity and driving down overall trading activity. XRP is not alone in this downturn—other major altcoins, including Solana (SOL) and Chainlink (LINK), have suffered similar losses, further signaling a risk-averse sentiment across the cryptocurrency market.
As uncertainty looms, traders are adopting a wait-and-see approach, hesitating to make significant moves until market conditions stabilize.
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Can XRP Reclaim $3?
Despite the current turbulence, some market analysts remain optimistic about XRP’s long-term prospects. Several fundamental catalysts could drive a rebound, including renewed optimism surrounding Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). A favorable outcome could provide much-needed momentum for XRP’s price recovery.
Furthermore, rumors of an upcoming XRP exchange-traded fund (ETF) in Canada, with potential expansion to the US, have reignited optimism among investors. A successful launch could substantially increase institutional investment and market demand for XRP.
Technical Indicators Signal Bearish Momentum
However, from a technical perspective, XRP continues to face selling pressure. The Moving Average Convergence Divergence (MACD) indicator on the one-hour chart has been consistently printing red bars for over a week, signaling persistent bearish momentum. Further exacerbating concerns, the MACD line has crossed below the signal line, reinforcing the downtrend.
Meanwhile, XRP’s Relative Strength Index (RSI) stands at 38, suggesting that the asset is nearing oversold territory but remains under intense selling pressure. Until bullish momentum returns, the possibility of further downside remains high.
While XRP’s long-term potential remains intact, the token is navigating a challenging landscape marked by network reliability concerns and broader market hesitancy. A decisive move above $3 will likely require improved technical stability from Ripple and a shift in overall market sentiment. Until then, investors may remain on edge, closely monitoring regulatory developments and the evolving technical outlook for XRP.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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