Skip to content

This is why XRP is losing all of its July gains

This is why XRP is losing all of its July gains

Last month, XRP experienced a remarkable surge, soaring approximately 80% following Ripple’s notable legal victory against the US Securities and Exchange Commission (SEC). The crypto token’s price escalated to new heights, bringing excitement to investors. 

However, the tides have turned since then, with XRP plunging into a steep downward trajectory, erasing almost half of those gains.

Weighing in on the matter, widely-followed crypto market analyst Michaël van de Poppe explained on August 6 why XRP is “retracing its entire move” after hitting the highest level in more than a year. 

Two factors behind XRP’s price retracement

Notably, van de Poppe listed two reasons that are driving XRP’s recent downswing. In particular, the expert noted that with the July spike, XRP investors finally got the “chance to get out” after holding the crypto token for roughly one and a half years.

According to his analysis, XRP last touched this price of more than $0.8 around 470 days ago. 

Investors use the opportunity to sell at a 1.5-year high. Source: Michael van de Poppe

So, in other words, cryptocurrency investors have seized the opportunity to take profits and sell their XRP holdings at a new high as Ripple’s never-ending legal battle against the SEC and the 2022 crypto winter continued to weigh on the token’s price.

Secondly, “buyers are not stepping in due to lack of confidence,” van the Poppe added. 

Although the court’s ruling from last month marked a landmark moment for Ripple and XRP, the lawsuit is still ongoing. With the growing uncertainty about the final outcome, crypto investors have been reluctant to buy the cryptocurrency amid potential downside risks. 

Price drop creates a new buy opportunity

However, while the recent price spike was an opportunity for XRP holders to take profits, the retracement that followed is now opening a window for investors who are feeling optimistic about Ripple’s odds in the lawsuit.

Notably, van the Poppe said the ongoing price correction has created “obvious entry points” for XRP. The crypto guru highlighted a green area on XRP’s weekly timeframe, which is somewhere between $0.46 and $0.54.

According to him, this is the price zone “where investors start to lose faith again.”

XRP price analysis

At the time of publication, XRP was changing hands at $0.62, down 2.52% in the past 24 hours.

XRP 1-day price chart. Source: Finbold

The cryptocurrency lost nearly 13% in the last week, while its monthly gains now stand at about 32%.

Year-to-date, XRP gained more than 80%, marking a strong overall price rebound following a disastrous 2022. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.