XRP investors could not capitalize enough on gains cryptocurrency has shown in past
XRP experienced a significant value reversal as traders dramatically closed their long positions, indicating significant profit-taking. This vigorous profit-taking is due to XRP’s past performance, which had been in a downturn for the previous 130 days, making it a less appealing investment in the eyes of many traders. XRP is trading at $0.4269 and looking for the next support level to stabilize its value.
XRP/USD 4-hour chart | Source: TradingView
The significant leveraged positions that traders created for XRP could explain the nearly 30% rise seen four days ago. Leveraged trading allows investors to increase their potential returns by borrowing additional cash from a third party or a decentralized protocol. Yet, because it magnifies both earnings and losses, this trading method has a more significant risk.
XRP/USD 1-day chart | Source: TradingView
The recent decline in the value of XRP has made it an exciting target for leveraged traders trying to profit from a price reversal. After the cryptocurrency’s value increased by about 30%, many traders canceled their long positions to secure profits, resulting in a substantial drop in the asset’s value. The large number of long positions that have been closed has put negative pressure on the price of XRP, making it difficult for the cryptocurrency to maintain its upward pace.
As XRP seeks its next level of support, it is critical to understand the overall market context, which includes regulatory hurdles confronting Ripple, the firm behind the XRP cryptocurrency. Ripple has been mired in a legal dispute with the Securities and Exchange Commission (SEC) over the categorization of XRP as a security, which has previously caused uncertainty about the asset’s future.
XRPL will be compatible with the Coreum blockchain
Uphold, a multi-asset digital trading platform, has announced support for the Coreum token and its planned airdrop. As a reminder, the deadline for the Coreum snapshot is March 24 at midnight ET/4:00 a.m. UTC, and the only way to qualify is to hold the previously listed tokens.
Bob Ras, the cofounder of Sologenic and Coreum, recently highlighted the potential benefits of interoperability between the XRP Ledger and the Sologenic Development Foundation’s Coreum. Smart contract features would be available to XRP.
“It’s notable to mention that the XRPL-Coreum interoperability enables XRP, SOLO, and eventually, other XRPL tokens to access the Coreum blockchain, unlocking the limitless potential for innovative use-cases by utilizing Coreum’s smart token technology. Both XRP and SOLO benefit from smart contract capabilities,” Ras said in a recent tweet.
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