Experts are sounding the alarm on XRP, with many traders believing that the token may see a full retrace of its recent bull rally.
XRP’s bullish surge in July was a result of Ripple’s landmark victory against the US Securities and Exchange Commission, which may now be in danger after the SEC has requested an appeal against the ruling.
The token is currently trading at $0.63, but experts believe that it may plummet to the 50-cent range.
Ripple is also not getting any boost from the broader crypto market, as Bitcoin continues to trade sideways near the $29,500 price level.
With XRP struggling, the new XRP20 token has now emerged as a potential alternative. This stake-to-earn coin has already surpassed its ICO soft cap and is quickly approaching the $2 million mark of its ongoing presale.
Experts Remain Bearish On XRP Despite Gemini Listing, How Far Can It Fall?
XRP continues to display a lack of any substantial landslide, correcting another 0.3% over the past 24 hours. The token is now trading at $0.63, down close to 5% over the past week and 11.5% in the last 14 days.
Ripple’s recent watershed victory against the SEC granted XRP its non-security status, resulting in a major bullish surge that saw the token trade near the $0.9 price mark. However, the threat of an SEC appeal, along with Bitcoin’s unusual lack of volatility, has made investors nervous about XRP’s short-term prospects.
Yesterday, in a letter addressed to District Judge Analisa Torres, the SEC requested an interlocutory appeal against her summary judgement in which she ruled that the programmatic and individual sales of XRP did not meet the Howey criteria.
Experts now believe that the token will see a further downward trajectory over the coming weeks. Popular crypto trader @CryptoGodJohn, who has close to 500K followers on Twitter, thinks that XRP may retrace its entire post-win pump and can fall below the $0.5 mark.
Meanwhile, Michal van de Poppe, the founder of MN Trading, reveals that the token will need to retest the support at $0.56 before seeing any further uptick.
The $0.56 price mark has emerged as a consensus entry point for expert traders. @CryptoTony, who has 328K followers on Twitter, informed that he will flip to long on XRP only if it falls below the crucial support.
Yesterday, Gemini Exchange finally relisted XRP on its platform and the token price surged monetarily to $50 in a potential glitch. However, the move did nothing to change the token’s bearish outlook.
The Federal Reserve can also become a major obstacle to any potential XRP rally. The latest Producer Price Index data revealed hotter-than-expected inflation levels in the economy, which may cause the Fed to proceed with another interest rate hike.
Further monetary tightening will continue to sap liquidity out of the crypto market, resulting in catastrophic performance from altcoins like XRP.
XRP20 Set to Hit $2 Million In Presale – Could it be a Better Alternative to XRP?
While XRP’s future looks uncertain, The new stake-to-earn XRP20 token has already hit its presale soft cap of $1.85 million and is now on the cusp of hitting the $2 million milestone – all in the short span of just over a week.
The token has been getting major traction in its presale, especially as XRP continues to display bearish tendencies.
Investors who missed out on Ripple’s 22,000% all-time rally are also accumulating XRP20 in the presale, viewing it as their second chance. After all, the token is priced at just $0.000092 in the ICO, which is 30 times cheaper than XRP at its all-time low, despite offering similar growth potential.
Furthermore, while Ripple’s cross-border payment technology mostly focuses on institutional clients, XRP20’s on-chain staking mechanism offers an excellent passive income opportunity for retail investors as well.
The project has also prioritised offering a smooth trading experience to investors – its ERC20 design offers seamless compatibility with popular wallets and it has also reserved 10% of the token supply to provide liquidity on decentralised exchanges.
Another 10% of the tokens will be burned to create a deflationary supply and boost XRP20’s value.
The XRP20 smart contract has also recently been audited by the 0xguard security company, which found no potential threat to the token’s safety. The presale has a hard cap of $3.68 million.