• XRP has been in a multi-month declining trend since May 2021 and is currently trading around $0.3788.
• Technical analysis suggests more pain ahead, as the death cross has happened again on the XRP/USD weekly chart between the 50 and 200 MA.
• Analysts believe that shorting XRP could be a great opportunity due to regulatory uncertainty and Ripple Labs‘ growth.
XRP Struggles To Recover
The XRP price has been struggling to break out of its multi-month falling trend that started in May 2021. Despite Ripple Labs‘ growth, the digital asset’s price has been held back by the ongoing SEC lawsuit. Currently trading around $0.3788, XRP dropped approximately 8.48 percent in February and technical analysis suggests more pain ahead for investors.
Death Cross On The Weekly Chart
For the second time, a death cross occurred on the XRP/USD weekly chart between the 50 and 200 MA. The first time this happened resulted in an almost 50% drop during 2020 Black Thursday – so history could repeat itself as analysts suggest that should this happen again, the XRP price could trade sub 20 cents in coming quarters.
Analysts Take On The Market
Cryptocurrency analyst Mr Huber believes that now is a good time to short XRP given that cumulative shorts have hit their multi-year lows – indicating that bulls are showing signs of exhaustion and traders with access to appropriate resources can make huge profits from going short on Ripple’s native coin. Blockchain lawyer John E Deaton also agrees, suggesting that regulatory clarity within US markets will not materialize until 2025 at least – making it important to launch well organized campaigns to ensure success when investing or trading in digital assets such as XRP.
Ripple Labs Growth
Ripple Labs‘ growth over recent months has helped keep prices relatively stable despite ongoing legal uncertainties; however it appears unlikely that any foreseeable breakthroughs will help push prices higher soon given current market conditions – leaving traders with limited options other than shorting unless new bullish drivers come into play or prices start increasing again soon after bottoming out at lower levels than expected by most analysts following developments closely within this sector
Conclusion
Given current market conditions, it appears likely that prices may continue decreasing before any significant recovery is seen; meaning traders who take advantage of these opportunities (by either long or shorting) may benefit significantly depending on their risk appetite and strategies employed when entering positions within this volatile asset class
