Ripple (XRP) enthusiasts witnessed a rollercoaster ride at the beginning of the month as the digital asset surged to $0.6652 on March 4, a promising start after bouncing off the critical support level at $0.55.
This rally was largely fueled by positive market sentiment, which saw Bitcoin smash its all-time high, soaring to $73,000. However, the euphoria was short-lived, as XRP took a steep plunge of approximately 18%, mirroring the broader downward trend in the crypto market, where Bitcoin dropped by about 14% during the same period.
The reasons behind this drastic fall remain unclear, although profit-taking and the movement of a significant amount of Bitcoin mined in 2010 to Coinbase during Bitcoin’s surge, as seen on Cryptoquant, may have contributed to the selloff.
This downturn sparked intense discussions within the crypto community, with seasoned analysts and influencers taking to social media platforms to share their insights.
One notable voice in the debate was Bill Morgan, a pro-Ripple lawyer who cautioned against attributing XRP’s price drop solely to Bitcoin’s movements.
“Don’t let people brush off XRP’s price drop as just because of Bitcoin or following the market. It is a half-truth. There is more to it.” Wrote Morgan. He pointed out the need for further development on the XRPL (XRP Ledger) to stimulate demand for XRP, dismissing the notion of XRP being a “shit coin.”
Meanwhile, despite the surprise plunge, there remains a significant level of optimism among investors regarding XRP’s potential resurgence towards the elusive $1 mark. Various voices within the crypto space have reiterated this sentiment, suggesting that the current downturn might be a temporary setback rather than a long-term decline.
A seasoned analyst, Stephanie Starr, highlighted the natural occurrence of market corrections in the crypto journey. Emphasizing the criticality of maintaining unwavering dedication to long-term objectives amidst market fluctuations, she advised XRP enthusiasts to seize opportunities by saying, “Load up if you can.”
Similarly, analyst “Lord Crypto” expressed optimism regarding XRP’s performance. According to him, despite facing a significant retest, XRP showed resilience by reclaiming key support levels and moving closer to $0.7- “a major demand zone” which coincided with Ripple’s acquisition of Standard Custody last month.
“Looks like XRP is not left out of the general market uptrend. From reclaiming the key support, the price has broken above the immediate resistance at $0.64 and surged closer to $0.7. And even after a 19% retest, the price is surging back upwards. This is bullish for the XRPArmy.” He wrote.
At press time, XRP was trading at $0.63, reflecting a 4.31% drop in price over the past 24 hours.