• 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 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bulls on winning streak pushing for more

Bitcoin price jumped this week after a shift in sentiment on Thursday when global equities went back in the green and investors favored riskier assets like cryptocurrencies. 

More Bitcoin News

Binance support for Polkadot parachain auctions could send DOT to new all-time high

At the Sub0 Conference representatives of Parity Technologies, DOT founders Gavin Wood and Robert Habermeier, confirmed that Polkadot is now ready to implement parachains, auctions and crowd loans on its blockchain network. 

More Polkadot News

XRP price awaits for volume to skyrocket to $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple bulls take control.

More Ripple News

Shiba Inu whales buy the dip after SHIB loses $600 million in market cap

Shiba Inu concluded a massive rally, and SHIB price plunged on October 14. Proponents were awaiting a Dogecoin flippening, however, SHIB dropped to 14th rank by market capitalization soon after. 

More Shiba Inu News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP