- The recent Ripple hack, involving 213 million XRP tokens worth $112.5 million, has intensified the bearish trend for XRP, prompting concerns of a potential drop below $0.4.
- Despite legal victories against the SEC, XRP’s lackluster performance and technical indicators suggest a pessimistic outlook, with traders and investors bracing for a potential decline to the $0.42 level in the coming days.
The recent Ripple hack on January 31, 2024, dealing a blow of 213 million XRP tokens worth $112.5 million, has cast a shadow over the cryptocurrency market, leaving investors on edge. The aftermath of this security breach, coupled with ongoing price struggles, paints a bearish picture for Ripple’s XRP.
XRP Hack’s Impact on Investor Sentiment
XRP finds itself under substantial selling pressure from both retail investors and crypto whales. A significant event occurred on January 22, 2024, when XRP broke a robust trendline on a daily time frame that had been steadfast since January 2023. This break, combined with the $112.5 million hack, has positioned XRP on a trajectory towards the $0.4 level in the near future.
The prevailing sentiment within the crypto community regarding XRP is notably bearish. A post on February 1, 2024, by a community member on X (formerly Twitter) underscores the uncertainty surrounding XRP’s future value. The member argues that XRP could either witness a substantial increase in value due to its utility or, if utility fails to matter, could potentially become worthless over time. Despite Ripple’s legal victories against the Securities and Exchange Commission (SEC), XRP has not enjoyed the same upward trajectory as its cryptocurrency counterparts.
As of now, XRP is trading around $0.49, experiencing a 4% decline in the last 24 hours. Over the past 7 days, it has faced a 3% downside momentum, with a significant 20% dip in the last 30 days. This data points towards diminishing interest from both investors and crypto whales in Ripple’s XRP.
XRP Technical Analysis and Upcoming Levels
Expert technical analysis reveals an extremely bearish outlook for XRP on a daily time frame. Key indicators include a breakdown and subsequent retest of its breakdown level, confirming a bearish move. Additionally, XRP is undergoing a bearish golden crossover on the daily time frame and is trading below the 200 Exponential Moving Average (EMA) on the weekly time frame.
Traders and investors should take heed, as these technical indicators, combined with bearish price action, signal a pessimistic outlook for XRP. In the coming days, XRP may potentially test the $0.42 level, adding another layer of uncertainty to its tumultuous journey in the cryptocurrency market.
