A popular cryptocurrency analyst has recently suggested that the native token of the XRP Ledger, $XRP, could soon se a dip below the $0.50 mark to nearly completely retrace the rise it saw after a federal judge determined the token isn’t necessarily a security.
In a chart shared with the popular trader’s near 500,000 followers on the microblogging platform X, a trader going by Johnny noted that a “full retrace” of the news, which came through a ruling in the legal battle between the U.S. Securities and Exchange Commission (SEC) and fintech firm Ripple, is coming.
The price of XRP surged rom around $0.47 in mid-June to over $0.80 after news of the ruling came out, but the cryptocurrency has been on a consistent downturn since that surge and is now trading at $0.664. Over the last seven days, XRP lost 7.3% of its value.
Johnny’s assessment anticipates a potential stabilization of XRP at its current price range. Nevertheless, he foresees a notable slump to the $0.50 area as we approach September, possibly followed by a period of consolidation before a further plunge below $0.50.
It’s worth noting that in a past assessment, the analyst underscored XRP’s failure to turn the $0.82 resistance into a supporting line, initially suggesting a retracement. Regardless of the bearish short-term perspective, he reaffirmed the $1 price goal as a tangible target.
Although Johnny maintains that the $1 mark is achievable, he acknowledges that it may not materialize in the near future. As CryptoGlobe reported various analysts have recently been making bullish predictions on the price of XRP, with one indicting a possible 430.6% price increase that could see it rally to $3.74.
Notably institutional investors appear to be moving in as well, with cryptocurrency investment products investing in XRP and Cardano ($ADA) attracting significant inflows, with institutional investors seemingly preferring altcoins over the past week, with the exception of Ethereum.
Funds investing in Cardano, Solana ($SOL), and XRP have seen significant inflows, raking in $640,000, $600,000, and $500,000 from investors last week. In contrast, Ethereum-focused funds saw $1.9 million in outflows, while Avalanche ($AVAX) investment funds saw $400,000 in outflows.
Featured image via Unsplash.
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