Crypto market sell off has triggered a downward movement for XRP. The price of $XRP has dropped 10% amid boarder market weakness, liquidating $33 million in long bets.
At the press time, XRP is trading at $2.87, down 7.74% as compared to the same time last day.
XRP Price Falls Despite Positive Decisions For the Ecosystem
The fall in XRP prices comes at a time when the decisons taken by the current Trump government should have idealy given the token’s prices a push.
According to reports, Eric Trump had confirmed that cryptocurrency ventures situated in the US will be eligible for a zero percent capital gains tax.
Eric reportedly stated that US-based cryptocurrency projects like XRP and HBAR will benefit from the 0% capital gains tax regime.
Many crypto enthusiasts believe that the change would make US-based cryptocurrency ventures more appealing.
There is no indication that the controversy surrounding Ripple, XRP Ledger (XRPL), and the potential inclusion of XRP in a U.S. crypto reserve will abate. Already tense with conflicting beliefs, the discussion took a new turn when Ripple was accused of centralization.
Ripple’s Centralization Rumors: What Had Happened?
The fall in the prices for XRP comes as previously, many market participants had accused XRP of centralization.
But, Ripple’s chief technology officer, David Schwartz, seized the debate, giving reasonable explanation of XRPL’s algorithm. His description of XRPL’s operation presented a very different picture, one in which decentralization is a practical reality rather than merely a theoretical concept.
Schwartz explained that in order to guarantee agreement on transactions, XRPL uses a consensus algorithm rather than proof of work. Since XRPL validators receive no payment, unlike Bitcoin miners, there are fewer incentives to act dishonestly or take over the system.
XRP Price Indicators: What To Expect?
At present, the technical indicators reveal that the Fear & Greed Index for XRP is 75 (Greed), while the attitude is now neutral.
Over the previous 30 days, XRP had 17/30 (57%) green days and 15.59% price volatility. With 23 technical analysis indicators indicating bullish signs and 9 indicating bearish indications, the overall sentiment for the price prognosis of XRP is neutral.
To determine if a cryptocurrency is overbought (above 70) or oversold (below 30), one common indicator is the Relative Strength Index (RSI) momentum oscillator. The RSI number at 67.19 at the moment suggests that the XRP market is in a neutral state.
In case XRP’s price trajectory takes a bullish turn, it can see a breakout above the upper trendline of the potential bull flag. For this, the token will have to trade above $3.10, might start a new bullish rally.
Also Read: XRP Hits 7-Year High Of $3.25, As Trump Likely Prepares For Strategic Reserves With Ripple