XRP price has reached fundamental support level that might finally become reversal point for asset

By Selena 03/12/23 12:30 PM

For the past few weeks, the XRP price has been moving in a descending channel while in a downturn. Yet, the asset has already touched a crucial support level that may dictate further movement. If XRP breaches this level of support, it might continue to move downward. The asset might move toward the top channel border if it bounces off this level.

The volume of transactions on XRP is one of the most critical performance measures. The asset’s trading activity indicates that the local slump for XRP might be ending and waning. This can be a clue that the asset will bounce toward the upper channel border.

The downturn could quicken, though, if trade volume increases on Monday. If this occurs, XRP can breach the crucial support level and continue its downward trajectory.

Despite all the difficulties, some analysts think XRP may still have an optimistic future. The asset is well-liked and frequently employed in the financial sector. If Ripple prevails in its legal battle with the SEC, demand for the asset and its price may significantly boost.

XRP/USD 4-hour chart | Source: TradingView

As of publication, XRP is trading at $0.3644 and continually moving in the above pattern. This movement will probably continue until the market determines whether or not to maintain its confidence in the near term.

Ripple’s potential exposure to the failed Silicon Valley Bank has left the XRP community divided

A response from Ripple addressing the defunct Silicon Valley Bank (SVB) and its exposure to Ripple is eagerly awaited by the XRP community. Recently, Ripple CTO David Schwartz tweeted that the San Francisco-based business would shortly release a statement.

Was ripple effected?

— Ryan Miller (@RyPieTmills2) March 12, 2023

“We will issue a statement soon. I can’t really say anything until we do,” he said.

In a series of tweets, the Ripple executive questioned the reason behind Silicon Valley Bank’s demise. While a bank’s assets and liabilities would not change during a run, Schwartz claimed he did not see how a bank could go bankrupt.

He said the bank was mismanaging its debts and was already bankrupt. Schwartz also pointed out that the bank’s insolvency resulted from failing to mark-to-market its long-term treasury assets.

Of Ripple’s apparent connection to the bankrupt Silicon Valley Bank, the XRP community is divided (SVB). Some feel Ripple may have been impacted, while others think it might buy some of SVB or contribute to a liquidity solution.

Several of its members have promised not to sell their XRP if Ripple verifies its exposure because they are worried about the potential impact on the currency’s value. Notwithstanding differences of opinion, everyone is concerned about the issue and frustrated by Ripple’s silence. Some participants have also expressed dissatisfaction with some XRP holders’ lack of practical thinking.