XRP’s Recent Correction Amid Market Crash

XRP recently corrected sharply amid a broader market crash, but there are reasons to anticipate this collapse.

Recent Price Movements

For context, the latest correction occurred after XRP peaked at $3.66 on July 18. As August opened, XRP struggled to maintain this level and eventually fell below $3, leading to a significant drop. Specifically, XRP saw a 6.62% decline yesterday, marking its largest daily loss in a month.

Profit-Taking Trend Among XRP Holders

Before this drop, The Crypto Basic highlighted a concerning market trend indicating a potential decline. While XRP traded above $3, around 94% of XRP wallets were profitable. This pattern repeated itself after XRP rose to $1.96 during the 2020/2021 bull run, where its wallets’ profitability exceeded 90%, leading to profit-taking trades and an 85% collapse.

XRP Showing Greater Resilience Now

Given this trend, market analyst Winny noted that with XRP’s wallet profitability exceeding 90% again, selling was inevitable. While this has happened, it hasn’t resulted in the drastic falls of the past. An 85% collapse would bring XRP down to $0.45, while a 95% drop would see it at $0.15.

Notably, Winny suggested that this scenario might differ due to increasing whale wallets, heightened network activity, and favorable chart patterns. Although profit-taking and the general market downturn pushed XRP below $3, it’s now steady at $2.9 and trying to reclaim that psychological level.

XRP RSI Shows More Room for Growth

Currently trading at $2.9, XRP’s daily RSI is at a low 43.05. For reference, when XRP was at $2.9 in mid-July, its RSI stood at a high of 83.69. Nevertheless, it surged to $3.66 days later. The present RSI value of 43.05 indicates potential growth. A recovery could propel XRP to new highs.