Renowned analyst Michaël van de Poppe has outlined two key factors driving the recent decline of XRP, along with highlighting an optimal entry point for the asset on the weekly timeframe.
Following the surge triggered by a favorable Ripple case ruling, XRP’s downward trajectory has been influenced by a waning investor confidence due to the potential appeal by the US SEC. This uncertainty has led to a persistent selling pressure, resulting in a 33% decline from its peak of $0.9380 on July 13.
Van de Poppe’s Analysis:
1. Long-term investors, who held XRP for about 1.5 years, are seizing the opportunity to exit their positions, especially after the recent rally that took XRP to its highest levels in over a year. This surge allowed investors who purchased XRP during this period to offload their holdings, contributing to the price decline.
What about $XRP?
It's retracing it's entire move.
Why is that?
– Investors finally getting the chance to get out after holding for 1.5 years.
– Buyers not stepping in due to lack of confidence.
Therefore, spot for obvious entry points.
The weekly timeframe has one. pic.twitter.com/yCwIGbnpPA
— Michaël van de Poppe (@CryptoMichNL) August 6, 2023
2. Lack of confidence among potential buyers is another significant factor, stemming from the uncertainty surrounding the SEC lawsuit and exacerbated by the recent decision in the SEC vs. Terra case.
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Identifying an Entry Point:
Van de Poppe, an experienced trader, focuses on historical support zones to identify entry opportunities during market corrections. He emphasizes the weekly timeframe as a strategic point for potential entry.
In his analysis, a weekly XRP chart highlights that corrections during bearish phases are more substantial compared to shallow corrections seen during bull cycles. He identifies a green area, indicating a price range of $0.45 to $0.56, as a potential retest on the weekly timeframe and a strong entry point for the upcoming cycle.
It’s important to note that the crypto market remains highly volatile and unpredictable, making this analysis an educational perspective on XRP’s price trajectory rather than investment advice.
Current XRP Status:
Despite the ongoing retracement, XRP has maintained its position above the $0.62 level. At the time of reporting, XRP is trading at $0.6260, representing a 10.75% decrease over the past week. Nonetheless, XRP still retains a notable gain of 33.85% in the last 30 days.