Despite massive bull run, XRP still needs another boost to regain losses
In a stunning turn of events, Ripple won a major legal battle against the U.S. Securities and Exchange Commission (SEC), with the court ruling that the company’s XRP token is not a security. The verdict, widely celebrated in the crypto community, sparked a rapid price spike for XRP, which at one point reached an impressive 100%.
However, despite this immediate price jump, XRP long-term performance remains a concern for investors. The digital asset is still down more than 90% against Bitcoin and 60% against the US dollar, underscoring the scale of the recovery needed to regain its prior positions. While the double-digit pump has certainly created positive buzz around XRP, the reality is that it has barely scratched the surface in offsetting the substantial losses suffered over the past few years.
The court ruling is undoubtedly an important step for Ripple and could potentially be a game-changer for XRP. If this legal victory can generate sustained buying interest, especially from institutional investors, it could pave the way for a rise in the longer-term value of XRP.
Still, investors should exercise caution. The digital currency market is notorious for its volatility, and while positive news can trigger rapid price increases, it can just as quickly reverse. Additionally, it is important to note that the decision does not necessarily result in a green light for all Ripple operations. It just indicates that XRP itself is not a security.
Uninvited Shiba Inu
Amid a broader cryptocurrency market rally catalyzed by Ripple’s significant win against the US Securities and Exchange Commission, one coin is significantly lagging behind. shiba inus (SHIB), the popular meme token, hasn’t quite managed to ride the wave of optimism sweeping the crypto sphere.
Following the court ruling that Ripple’s XRP token is not a security, many digital assets have seen notable price increases, fueling a broad market rally. However, Shiba Inu growth has been relatively modest in comparison. It registered an increase of only 5% and already appears to be in retracement mode, underscoring the relative underperformance of the coin even during this positive market phase.
Interestingly, while Shiba Inu managed to break through their local resistance level during this phase, the movement lacked the usual conviction seen in such cases. The breakthrough was achieved with low trading volumes, suggesting a lack of strong buying interest, even amid a broader market rally.
Shiba Inu’s disappointing performance raises questions about its immediate prospects. While the cryptocurrency market often moves in tandem, individual digital assets can also exhibit unique price behavior based on specific factors. For Shiba Inu, it seems that the rally triggered by Ripple did not provide enough impetus for a significant price surge.
Ethereum hits $2,000
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, made a strong resurgence, hitting a two-month high and crossing the psychologically significant $2,000 mark. The question everyone is asking now is what’s next for the leading smart contract platform?
After crossing the $2,000 threshold, Ethereum faced an expected level of selling pressure. This resistance suggests a reversal may be in sight as investors look to lock in gains from the recent rally. Given the volatile nature of the cryptocurrency market, such fluctuations are not unexpected, and potential investors should be prepared for more.
The next significant resistance level for Ethereum is at $2,130, a local high reached in April. However, Ethereum has a few hurdles to clear before it can consistently sustain itself above that level. A crucial factor influencing Ethereum’s progress is the performance of decentralized finance (DeFi) platforms, which primarily operate on the Ethereum network.
While Ethereum has seen a surge in price, the DeFi sector has been relatively stagnant. For a sustained long-term rally, Ethereum would require simultaneous growth in the DeFi market. Therefore, the future trajectory of Ethereum is partly linked to the performance of the DeFi sector.