Tanya Abrosimova
Independent Analyst
- Ripple's IPO may hurt XRP price in the long run, experts predict.
- XRP/USD needs to regain $0.2400 to improve its short-term technical picture.
Ripple's XRP, the third-largest digital asset with the current market value of $10.6 billion, is changing hands at $0.2326, down from the intraday high of $0.2358. XRP/USD has gained over 1.5% in the recent 24 hours in line with the global sentiments on the cryptocurrency market.
Ripple's IPO may turn int a disaster for XRP
The head of Ripple Brad Garlinghouse recently hinted that the company may go to IPO, which is a natural development for any business. However, the reaction of the XRP community Ripple going public may be unpredictable, experts warn.
Thus, Boom Bust Anchor, Christy Ai, believes that IPO will turn into a complete disaster for Ripple's token as many traders hold it as a speculative asset in hopes to profit on the price increase.
Right now, half the people at XRP they are not using it for the actual utility, they are holding it like an investment. Back when it ballooned to $3, or even now when it’s at $0.22, that value as a utility token, it’s not worth $0.22. So we’re expected to see a major devaluation even though it does have a utility purpose, he said in a recent show.
He also added that investors may be upset with Ripple’s decision to also issue shares that will reduce the speculative potential of XRP token.
XRP/USD: technical picture
On the intraday level, the initial support is created by a former resistance around $0.2300. closely followed by a $0.2280 area, reinforced by SMA50 and SMA100 on a 4-hour chart. If it is broken, the sell-off may be extended towards $0.2200 and $0.2136, which is the lowest level of the previous week.
On the upside, we will need to see a sustainable move above $0.2358 (intraday high) for the recovery to gain traction with the next bullish target at $0.2400 (the previous consolidation border). Once it is out of the way, $0.2500 and $0.2540 (2020 high) will come back into focus.
XRP/USD, 4-hour
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