Ripple price (XRP) rose significantly in the last two weeks amid its penetration in the financial sector; the price is now struggling to extend the momentum. What’s going on? XRP price dipped for the fourth straight session on Wednesday, and the price plunged below $103. There was no particular event or market report that could change the bullish trend; the downside movement signifies a major price correction – possibly the end of the Bull-Run.
Has The Bulls Enthusiasm Faded?
Bulls had pushed ripple and other cryptocurrency prices in the last two weeks, with the reports of softer regulatory actions from the United States and South Korea.
Along with the support from a broader rally in digital currency prices, stronger confidence from payment services companies and banks added to the growth in XRP price. Ripple has achieved several milestones in the past two weeks, including the partnership with Saudi Central Bank for internal and cross-border payments.
The dip in cryptocurrency prices shows that investors are trying to capitalize on the gains they had generated in the last two weeks.
The strategy of shorting digital currencies suggests lower confidence for the further upside potential; investors aren’t seeing any major event that could help to provoke price to a new high.
Will it be a Big Price Correction?
Cryptocurrencies are speculative investments, and their price movement is tricky to predict – one bad or good news report can create big price swings. Currently, the market trends aren’t looking completely in favor of bulls – perhaps the market has been experiencing adverse reports from key authorities?
Bank of England (BoE) Chief Mark Carney said, “Bitcoin has pretty much failed as a currency by standard benchmarks and is neither a store of value nor a useful way to buy items.”
Bangladesh has also started its crackdown against crypto traders – the Bangladesh Bank warned investors from using bitcoin for financial transactions.
Even Ethereum founder, Vitalik Buterin has warned investors of the possible slumps suggesting investors only invest the money if they can afford to lose it. Ripple CEO had a similar sentiment when he warned of continued price volatility in the coming days.
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