The crypto market has reverted to its bearish stance, with Bitcoin finally tumbling below the $29K mark to trade near $28,800.
Altcoins are bearing the brunt of the current negative outlook, with XRP posting the worst performance of any top 10 cryptocurrency.
XRP has plummeted close to 2% over the past 24 hours and is on the cusp of falling below the $0.6 price level. Experts believe that the token is under threat of losing all the gains it made from Ripple’s landmark victory against the SEC and the ensuing bull run.
However, while XRP struggles, the new XRP20 token is showing bullish growth, having already raised over $1 million in under two weeks of its presale.
Traders Dump XRP As Token Plunges Double Digits
XRP’s doom and gloom scenario continues to play out as the token has depreciated 14% over the past week to trade at $0.616.
The token has corrected 2% over the past day, with even fervent XRP backers starting to get nervous. The bulls were fully expecting the token to hit the $1 mark in light of Ripple’s watershed win against the SEC.
On the other hand, experts believe that XRP will continue to plummet, and will soon hit the 40-cent range. Popular crypto trader @CryptoGodJohn expects a full retrace of the recent bull rally will soon play out, with another analyst @trader1sz expecting the token to fall to $0.4479.
@Tom_Capital not only expects a 100% retrace but believes that the token will go to even lower levels.
Michael van de Poppe, the founder of MN Trading, explains that XRP continues to spiral down as investors are finally getting a chance to dump their holdings after accumulating for 1.5 years. Furthermore, the lack of confidence in the token in light of a potential SEC appeal is also not helping matters.
Judge Analisa Torres ruled partially in favour of Ripple when she stated that the company’s programmatic sale of XRP to retail investors did not violate the Securities Act.
On the other hand, Judge Jed Rakoff, while presiding over the SEC’s lawsuit against Terraform Labs, rejected Torres’s analysis and gave a major boost to the SEC, stating that the Howey test does not distinguish between retail and institutional investors.
Meanwhile, Ripple continues to boost XRP’s circulating supply, unlocking an additional 1 billion tokens from its escrow accounts in July. The increased token supply may also be an obstacle to any potential bull rally.
All eyes now turn to the upcoming CPI inflation report, set to be released on the 10th of August. The data will be a key factor in determining whether the Federal Reserve will continue its hawkish monetary policy or not.
A less-than-ideal CPI can result in more bloodshed for altcoins like XRP.
XRP20 Token Emerges as XRP Alternative as it Hits $1 Million Milestone in Presale
While XRP struggles, the newly-launched XRP20 token is gaining serious traction, especially with traders adopting a pessimistic outlook regarding its predecessor’s short-term prospects.
Investors who missed out on XRP at its all-time low are also gravitating towards the token, hoping to replicate Ripple’s 22,000% bull rally. After all, XRP20 is priced at just $0.000092 in the ICO, 30 times cheaper than XRP at its all-time low.
The surging demand for XRP20 is visible in its presale – it has already raised over $1 million in just over a week and is well on its way to hitting its soft cap target of $1,850,000. The presale also has a hard cap of $3,650,000.
The token’s on-chain stake-to-earn mechanism is another major point of attraction for retail investors as it offers them an excellent opportunity to generate passive income. Furthermore, its ERC-20 design also offers seamless compatibility with existing platforms and wallets, making it easier to trade, track and store the token.
40% of the entire token supply is up for grabs in the presale itself, offering ample opportunity for investors to get in early. 10% of the tokens are reserved to provide liquidity on decentralised exchanges, while another 10% will be burned to create a deflationary token supply and boost the XRP20’s value.
With there now being less than 50% of the presale tokens available to buy, investors must act quickly to secure $XRP20 before its IEO.