Top market analyst Benjamin Cowen says sentimental events cannot sustainably drive XRP price as the digital asset falls below $0.5.
Data from the market tracking platform CoinMarketCap indicates that XRP is down by over 24% in the past 30 days. The digital asset now sits at $0.4775, which is precisely the point it was on July 11.
In particular, $0.4775 was about the price XRP traded before the United States court upheld that XRP is a digital asset, not a security.
Given XRP’s current situation, Benjamin Cowen, a renowned market analyst and CEO of Into The Cryptoverse, took to X to affirm his longstanding belief about the real market movers.
$XRP has retraced the entirety of the move that came after the SEC vs. Ripple case.
Narratives do not drive the market, liquidity does. pic.twitter.com/8295jFRdHB
— Benjamin Cowen (@intocryptoverse) September 11, 2023
Narratives Are Unsustainable Drivers
According to Cowen, “Narratives do not drive the market.” The CEO implied that accounts such as a positive outcome in a lawsuit involving a digital asset are unsustainable factors for higher prices.
He asserted that XRP losing all the progress that accrued following the victory judgment is proof of his sentiment. Cowen believes the enthusiasm from such occurrences is often transitory, with the cryptocurrency reverting to its typical trajectory.
Moreover, Cowen contended that what drives the market is liquidity. He believes the worth of digital assets hinges on the prevalence of ample liquidity rather than individual narratives.
Crypto Community Reacts
However, Yassin Mobarak, founder of Dizercapital and a prominent figure in the XRP community, challenged Cowen’s view. Mobarak pointed out that the bearish trend that XRP has suffered is not unique to the digital asset. He highlighted that the entire market, including bigwigs Ethereum (ETH) and Bitcoin (BTC), are gripping significant downturns.
Notably, information from CoinMarketCap confirmed Mobarak’s view. Most of the top 100 ranked cryptocurrencies are visibly in red zones.
Furthermore, another commenter countered Cowen’s sentiment, saying, “Liquidity is available for deployment if the narrative is correct.”
The commenter argued that much liquidity is available in the traditional financial system but is used to earn interest. They contended that if more concerns about the stability of the traditional financial system arise, the liquidity will quickly flow into crypto assets. This formed the basis of their view that narratives call for liquidity.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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