- XRP suffers significant price drop after XRP Ledger malfunction and trade war concerns
- Buyers hold at $2.40 support level despite weekly bearish downturn
- Positive legal developments and potential new regulations may boost XRP’s value
A temporary halt to XRP Ledger operations led to one of the worst-performing days for XRP since its resurgence last year.
The altcoin began the day trading at $2.43 per token, already down from the previous date. Throughout the day, the altcoin continued to move downwards, reaching as low as $2.35 this afternoon.
Today’s losses already amount to the weekly bearish downturn the asset has had. Over the last seven days, XRP $3.09 to the current $2.43 per token, amounting to a 22.32% decrease.
Despite the beatdown, buyers appear to have found solace in the $2.40 margin, a level in which they have refused to let go two times this week.
XRL Ledger Malfunction Adds Selling Pressure
The increasing pressure on digital assets due to concerns of a potential trade war between the U.S. and China had already been driving currencies like XRP down throughout the week. Adding to that, technical issues with the decentralized blockchain technology powering the XRP issuance.
The XRP Ledger went through an unconventional malfunction on this day, when the platform froze block production for over an hour during the afternoon. The network froze at the ledger 93927173, causing validators to stop production as they could not verify transactions.
Around an hour later, the ledger went back to normal. However, this momentary setback was enough to cause XRP to tumble in value in the intraday chart.
At one point throughout the day, XRP’s dip caused it to trade at an 8.9% decrease in value—but the asset managed to correct some of its losses as the XRP Ledger recovered.
Potential Reversal for XRP: Positive Developments on the Horizon
Still up 374% since November of last year—it’s hard to say XRP holders are ready to throw in the towel following a bad week. This year still holds several key developments that could continue to boost XRP forward.
In all likelihood, the world will finally get to a conclusion to the 4-year-long legal scuffle between Ripple Labs and XRP. Moreover, given the new shape of the Securities and Exchange Commission, and how keen on digital assets developments the new SEC leaders are—it’s tough to say XRP won’t benefit from the new crypto-focused regulation coming in this government.
Also, Ripple Labs CEO Brad Garlinghouse’s proximity to the new White House raises expectations of a potential multi-crypto reserve by the U.S., with XRP potentially included.
So far, the difficulty has been Donald Trump’s foreign policy and the potential for it to increase inflationary pressure on the U.S. economy.
If you’re interested in checking out daily XRP analysis and predictions, make sure to check out our friend Florian Biaggio.
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