If the cryptocurrency market as a whole has experienced a strong downward trend in recent weeks, some digital assets could suffer all the consequences. According to analysts, XRP will be one of the hardest hit cryptocurrencies. They expect it to drop by more than 40% by the end of July.
The price of ripple (XRP) may drop
Looking at the Ripple (XRP) charts, experts have seen that the cryptocurrency is slowly starting to form a technical structure after hitting its high of $ 1.98 in April 2021. This is its all-time high up. as of the date of writing this article. That said, it happens that the token has since followed a downward trend inside a “fork”.
At the moment, the movement of Ripple corresponds to that of a descending triangle and this movement may not end for a few months. In any case, the downward trend could be extend for several months. In concrete terms, the price of the digital asset could drop to 0.18 dollars, which would correspond to a reduction of almost 40% compared to its price of 1uh June.
Consequences of the bearish momentum
XRP’s bearish setup is far from isolated. On the contrary, it is part of a general trend of decreasing digital asset prices. The proof is that some tokens are currently trading at prices that are almost 90% below their all-time high during the last year. This situation began in May with the collapse of the Terra (LUNA) blockchain.
Several companies specializing in the cryptocurrency sector have also suffered the consequences of the general decline. For example, Celsius Network, one of the largest cryptocurrency platforms, has interrupted unexpectedly the withdrawals of cryptocurrencies in June due to “extreme market conditions”. Three Arow Capital has found itself confronted irrecoverable debts. For its part, Babel Finance followed Celsius Network’s lead by blocking withdrawals.
If the chances of XRP continuing its downward momentum are high, it is also because of the interest rate increase of 0.75% by the Federal Reserve on June 15. All cryptocurrencies, in fact, are affected by this situation which could prove to be very difficult.
Like many cryptocurrencies, Ripple (XRP) will suffer the consequences of the general decline in prices in the digital asset market. Unfortunately, it looks like this downward trend will continue.
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