As the cryptocurrency market staged it’s comeback over the course of this year, the price movements of Ripple’s XRP token have surprisingly done quite the opposite. For most of digital assets rally, the price of XRP seemed to stagnate before the sudden beginning of its steady drop to its current valuation of $0.22 at the time of writing.
Despite the current price signifying a 4.61% gain from its most recent low of $0.21, and the news of record transaction volumes. The latest price declines left a number of social media based commentators remain audibly unimpressed. Taking to Twitter, one such commentator – Alex Krüger – pointed out a pattern of “Linear Regression” that started in January last year, and could possibly be a forecasts of more storm weather in XRP’s near future.
The Possible Cause?
The digital assets market is an unpredictable one, so in the case of whether or not XRP will follow the regressive trajectory forecast by Krüger remains to be seen. However, to get a better picture of the possible outcome, there are a few factors we can look into.
When it comes to their plan to beat Bitcoin to mass adoption, the team behind XRP does not seem to be doing too well. Despite the good news about their partnerships with MoneyGram, the price action remained mostly in negatives. This may be a result of major banks having only ever engaged with XRP as a way of testing the network’s capability. However no commitments ever came from them.
Another point that makes many cryptocurrency investors sceptical of XRP is the perplexing notion of the network’s ability to function correctly without the need to use XRP tokens. Which is not entirely true.
One of the cryptocurrency market’s most notable traits is its volatility. From where XRP stands now, the detractors on the one end will push the narrative XRP’s impending doom. While, on the other hand, the headliners will view this as a golden opportunity to relive the glory of late 2017 to early 2018.
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