XRP has retraced all gains from the victory ruling, but long-term holders may see $0.5 as a good entry point.
Amid the widespread bearish trend rocking the crypto market, digital assets like XRP have taken a significant hit. The bleeding trend caused XRP’s value to return to the point it traded at before receiving regulatory clarity.
The situation has sparked varied reactions from the crypto community. Benjamin Cowen, CEO of Into The Cryptoverse and prominent market analyst, shared his sentiment about XRP and all altcoins in general.
Cowen proclaimed that XRP lost all the gains it secured following Judge Analisa Torres’ ruling declaring it a non-security. The analyst further expressed his long-held belief about the propelling dynamics of the altcoin market.
According to him, narratives such as the victory outcome in the SEC v. Ripple case are not sustainable factors to push for higher prices. He believes the excitements that follow such events are often short-lived as the crypto is bound to retrace its normal course.
In his words:
“XRP has completely retraced the entirety of the move that came after the SEC vs. Ripple ruling. As I have said, these narratives do not sustainably impact the price.
#XRP has completely retraced the entirety of the move that came after the SEC vs. Ripple ruling.
As I have said, these narratives do not sustainably impact the price.
The price of altcoins are more so a function of excess liquidity than they are about who wins a court case. pic.twitter.com/8NWZk4r7JR
— Benjamin Cowen (@intocryptoverse) August 18, 2023
Furthermore, Cowen argued that the value of altcoins is a function of the abundance of liquidity rather than single events like lawsuit outcomes. He remarked:
“The price of altcoins are more so a function of excess liquidity than they are about who wins a court case.”
Notably, the presence of excess liquidity in the market implies there is a lot of money to be invested. The analyst believes such a situation can potentially lead to higher prices for altcoins.
According to data from the market tracking site, CoinMarketCap, XRP trades at $0.5056, with a significant 19.61% decline over the past week. XRP’s market cap now sits around $26.73 billion. This figure implies XRP has lost over $12 billion in market share over the past 30 days.
Meanwhile, some crypto enthusiasts believe the current $0.5 price point represents a good entry point for long-term holders. A prominent Wall Street financial expert shared this sentiment, as The Crypto Basic reported.