XRP at Crossroads: Price Slips as Utility Questions Loom

Things were going well for XRP, Ripple’s cryptocurrency, in July and the first half of August. But now the price curve has corrected significantly and is hovering around $3. Where is Ripple headed?

With a market capitalization of approximately $176 billion, Ripple’s cryptocurrency underlines its position as the third most important global cryptocurrency. However, anyone looking at the details is getting nervous. The XRP all-time high of $3.65, reached exactly one month ago, is long gone, and now the Ripple altcoin is fighting for the $3 support line. Will this psychologically important level hold for XRP?

On the Polymarket betting market, pessimists currently outnumber the rest, predicting an XRP crash below $2.70 in August

However, at least 15 percent of participants there believe XRP will push the Ripple price curve above $4 in the final days of August. The situation is reminiscent of Ethereum in June, when analysts identified a crossover point for ETH – which the markets clearly decided in favor of Ethereum.

For XRP, the outlook could be less encouraging. Although Ripple’s legal dispute with the U.S. Securities and Exchange Commission (SEC) has been settled in principle, the relevant appeals court has not yet approved the deal. Court observer James Filan points this out via X. Without a legal settlement for Ripple, hopes for XRP ETFs remain theoretical for the time being. With optimistic price forecasts for XRP, ETFs are the focus.

Chart analyses indicate a $2.80 mark at which the dams for XRP could break. On the upside, the $3.30 hurdle would have to be broken for XRP to clearly break the Ripple trend. With a weekly loss of 9 percent, the new trading week for XRP is off to a tough start.

Conclusion: XRP must face fundamental questions

Ripple is accompanied by the fact that the crypto company still lists 40 percent of all XRP as its reserves. To this end, the founders have secured large XRP holdings; Chris Larsen, for example, is making millions in profits through sell-offs, but at the same time he is sending less than optimistic signals to investors and the crypto markets.

While Bitcoin has found its place as “digital gold” and Ethereum is convincing as a decentralized “world computer,” XRP faces obvious problems in its search for meaning. Critical investors are asking what XRP actually intends to be good for in everyday life and thus valuable. What can Ripple do that neither Bitcoin nor Ethereum can? In the medium and long term, XRP’s fate will be decided by its intended uses, and this will then be reflected in its price curve.

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(Featured image by Alesia Kozik via Pexels)

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