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Sujit Kumar
Feb 12, 2024

XRP Faces Headwinds as Market Correction Takes Hold

XRP Faces Headwinds
In a market correction that has affected various cryptocurrencies, XRP experiences a 2.5% decline, settling at $0.5182. The setback follows a strong weekend where increased Bitcoin ETF volumes contributed to widespread market gains.

While XRP shows a 3% weekly increase, its 30-day performance reflects a 9.5% dip, leaving the altcoin with a 35% gain over the last 12 months. Despite surpassing USDC in market cap over the weekend, XRP faces challenges in building sustained momentum.

Technical Indicators Signal Challenges

XRP's struggle for momentum is evident in its technical indicators. The 30-day average dropped below the 200-day average in a 'death cross' at the end of January. The relative strength index (RSI) failed to surpass 50 over the weekend, signaling renewed selling pressure and falling towards 40.

The support level, declining since late November, raises concerns about potential further losses before stability returns. With a 24-hour trading volume of $800 million, XRP faces low trading activity, indicating caution among investors.

Whale Activity and Market Outlook

Large transfers and whale activity suggest a leaning towards selling rather than buying XRP. The altcoin's performance in the coming weeks may witness further losses before potential bullish market conditions offer support.

While short-term challenges persist, the long-term outlook for XRP appears more promising. The resolution of the ongoing Ripple-SEC case, expected by summer, could involve a substantial financial disgorgement for Ripple. Despite recent legal setbacks, Ripple seems prepared for a significant fine, with expectations of renewed growth post-settlement.

Altcoin Opportunities: Introducing Smog

(SMOG) As traders explore alternative tokens during XRP's consolidation phase, Smog (SMOG) emerges as an exciting Solana-based meme token. Listed on the Jupiter DEX aggregator, SMOG has gained nearly 2,000% since its recent launch.

Unlike other Solana-based meme coins, SMOG has maintained most of its early gains, thanks to its unique airdrop system incentivizing long-term holding. Regular airdrops offer substantial rewards to holders with the longest tenure, contributing to SMOG's impressive performance.

As XRP navigates short-term challenges, the broader market presents opportunities for traders to explore promising altcoins like SMOG, each with its distinctive features and potential for market-beating gains.

XRP Faces Headwinds as Market Correction Takes Hold
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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