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.
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.
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.
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