Can XRP recover from the recent price drop?
Ripple XRP experienced a recent drop much like other cryptocurrencies. The questions arise that whether XRP will be able to overcome this price and recover from it soon?
In the month of January the price of XRP was comparatively higher and despite fluctutations the price kept increasing remain almost at the same price. However the recent decline in the XRP price is indicating the pattern similar to other cryptocurrencies.
A decline in the price of the overall cryptocurrency market often affects XRP as well, regardless of any other factors specific to XRP. This happens because cryptocurrencies are considered a collective class, which is why price fluctuations of one cryptocurrencies affects all.
XRP price drop
The Past couple of days were quite like a roller coaster ride for Ripple. As the XRP price kept fluctuating from high to low. The price went up by 11% for almost 2 days from March 6-8. Later from March 9 and till date the price has been going down. And so fae the downtrend shows about 9% decline.
Following this dowtrend on March 9 the XRP price became bearish but when it continued to drop that indicated an even stronger bearish trend. As of this moment the price of XRP is $0.36 which indicates a further 3% decline.
The Relative Strength Index (RSI) line indicated the strong bearish trend as it was on 40 the last time. And there is expected to be a further drop in prices. In between the fluctuation the prices even reached it resistance point from arounf $0.39 to $0.43.
MVRV and the active addresses following price decline
The price drop has left the XRP ‘overvalued’ because the market price is still closer to the realizd value. However according to Santiment statistics of MVRV, XRP has been losing its value for over a month now. MVRV is a metric used to measure this difference between market value and realized value. So far the market value of XRP has dropped to -5.1%. This indicates that the market value of XRP is below its realized value.
This decrease shows that the XRP is undervalued. Thus demostrating that the XRP holders are now selling in loss.
Another negative aspect to this entire scenario is the decrease in active addressing. Active addressing in simple terms is the user activity on the blockchain. Due to the decline in prices XRP also went through a decline in active addresses. This shows that there has been a decrease in XRP trading overall.
Will there be a further drop in XRP price?
Before experiencing a collapse, XRP was increasing in value. the reson behind that is the Ripple XRP case with the SEC. Despite everything people have a positive sentiment towards Ripple as they think Ripple will win. One of Ripple’s lawyers, John Deaton, also suggested in a tweet that the judge in the case thinks the SEC lawyers are more interested in their own interests than in upholding the law.
However the market is still unsure how long the prices will drop for. Buth they made the community aware that they must be preapred for anything.