🌎 XRP Price Drops Over 30 Percent Amid Bear Market

XRP Price Plunges: Understanding the Bear Market Reversal

The XRP cryptocurrency has experienced a sharp decline, wiping out some of the gains made in the fourth quarter of last year. Despite facing numerous bullish catalysts, XRP has entered a strong bear market, dropping by over 30% from its highest level this year.

XRP Ledger Network Sees Positive Developments

Meanwhile, the Ripple USD (RLUSD) stablecoin continues to gain market share, with daily volume rising to over $100 million. Other players in the XRP Ledger network, such as Coreum and Sologenic, have also seen increased traction.

SEC Appeal and Potential Spot XRP ETF Approval

There are rising odds that the Securities and Exchange Commission (SEC) will end its appeal against Ripple Labs this year. The SEC has already dropped charges against companies like Uniswap, Coinbase, and Gemini. Furthermore, the number of XRP transactions has continued to rise this year, with data showing that the number of transactions rose to almost 1 million on March 1.

Additionally, there are signs that the SEC will approve a spot XRP ETF later this year, which could lead to increased inflows from investors. According to JPMorgan analysts, these inflows could be worth over $8 billion in the first year.

Wyckoff Theory Explains XRP Price Crash

The Wyckoff Theory or Method, discovered by Richard Wyckoff 90 years ago, explains the recent Ripple sell-off. This theory describes how asset prices move over time and the phases they follow.

The Wyckoff Theory identifies four key phases: accumulation, markup, distribution, and markdown. XRP remained in an accumulation phase for over three years, followed by an upward surge or the markup phase, triggered in November. The coin then entered the distribution phase, characterized by indecision and pull-and-push among bulls and bears.

A head and shoulders pattern has formed, with a neckline at $2. If the coin moves below the neckline, there is a risk that it will enter the markdown phase, potentially dropping to the 78.6% retracement level at $1.1395.

Tips for Investors

Monitor the crypto fear and greed index, which has moved to the extreme fear zone of 18.
Keep an eye on the SEC’s appeal against Ripple Labs and potential approval of a spot XRP ETF.
Watch for signs of increased traction in the XRP Ledger network.