The crypto market is once again displaying an unprecedented lack of volatility as Bitcoin holds steady at the $29,100 price level.
However, major altcoins continue to take a beating, with XRP correcting 7% over the past week and inching down toward the $0.6 mark.
Ripple’s post-win euphoria has completely faded as the threat of a successful SEC appeal has now become the overarching narrative. The lack of macroeconomic clarity and the hawkish stance of the US government against the crypto industry also spells trouble for the short-term prospects of the token.
Some investors who were expecting much superior returns after Ripple’s landmark win against the SEC are now looking to newly-launched tokens that can outperform the crypto market.
The XRP20 token is gaining major traction, having already raised $400K in its presale in just three days.
XRP Price Struggles As Experts Paint A Grim Outlook
XRP continues to trade in red and has emerged as one of the biggest losers in the crypto market over the past week. The token has plunged 7% over the past week to trade at $0.66, bringing its total losses to 15% over the past 14 days.
TradingView is now giving a SELL signal to XRP in the daily time frame as it underperforms most of the important moving average indicators.
Experts are also predicting a rough short-term outlook for the token. Popular crypto investor @TheEliteCrypto believes that XRP became overbought after Ripple’s landmark victory and can correct all the way to $0.5.
Another trader, @Trade4ddict, revealed that a confirmed descending triangle will likely play out for XRP, resulting in the price dropping to $0.56.
Judge Analisa Torres awarded a partial victory to Ripple when she ruled that the company’s programmatic sale of XRP to retail investors did not meet the Howey criteria and did not violate the Securities Act.
However, Judge Jed Rakoff of the SDNY district court gave a major boost to the SEC when he rejected Torres’ analysis, highlighting that the Howey Test does not distinguish between retail and institutional purchasers.
Investors are now concerned over both the short and long-term prospects of XRP as the SEC appears set to appeal Torres’ ruling.
The broader crypto outlook is also not boosting investor morale. A recent report from Santiment reveals that the crypto market remains strongly correlated to S&P 500. As a result, the increasing strength of the US dollar over the past few weeks has become a major obstacle for any potential bull rally.
The threat of Binance being prosecuted for potential fraud by the US Department of Justice is also not helping matters.
Expert trader Michael van de Poppe reveals that while Bitcoin has held the $29k price mark, the lack of confidence in the market can push BTC to $27.8K, resulting in more bloodshed for altcoins like XRP.
XRP20 Raises $400K In Impressive Presale Performance, Could it be an Alternative to XRP?
While the XRP price struggles, the new XRP20 token is growing quickly having recently launched its presale phase.
The token is currently priced at just $0.000092, which is 30 times cheaper than XRP at its all-time low. The surging demand for the token is visible as it has hit the $400k milestone in just 3 days.
XRP20’s on-chain stake-to-earn mechanism is also creating a lot of buzz amongst retail investors due to its ability to generate attractive passive income. Furthermore, its ERC-20 design offers seamless compatibility with existing platforms and wallets, making it easy for investors to trade, track and store the token.
The project has also employed an efficient burn mechanism – 0.1% of every XRP20 transaction will be sent to a burn address. Furthermore, 10% of the entire token supply will also be burned, resulting in deflationary supply and surging token value.
Another 10% of the tokens will provide liquidity on decentralized exchanges, offering a smooth trading experience.
The XRP20 presale has a hard cap of $3,680,000. Tokens can be bought using ETH or USDT.
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