XRP on Thursday dipped by double-digits in the charts and lost over 10% of its value. The leading altcoin is hovering around the $3.10 mark, and if the downturn continues, it could fall to the $2.90 level. It could erase most of the gains it generated this month and go back to square one in the indices. XRP is at a pivotal position where traders are exiting after initiating sell-offs due to profit bookings, leading to a correction.
Also Read: Ripple Co-Founder Moves $175 Million XRP Amid 11% Price Crash
Investors fear that Ripple’s native token has peaked after reaching an all-time high of $3.65 last week. This puts it in a position of weakness as the bigger the sell-off, the larger the chance of its price diving south. Taking an entry position now is considered risky as XRP is in the correction phase. Chances of losing money are higher now as the leading altcoin is on its way out of traders’ wallets.
Will XRP Enter Correction Phase?
According to the latest ETH data from Coinglass, Ethereum sell orders have spiked this week, suggesting a price decline for ETH. The firm noted that the “market may be facing selling pressure,” and leading cryptocurrencies could experience a slump this week. The development also indicates that Ripple’s XRP could face a correction and turn red in the charts.
Also Read: Expert Predicts XRP Will Reach $2,000 Sooner Than You Think
In addition, call strike options for XRP were placed at $3 and $3.50 early this month in the derivatives market. Now that Ripple’s token has reached the target, the options are being sold in the broader sector. However, they expire in September, but most of the holders are jumping ship with the gains. This adds to XRP’s correction phase, pushing it towards the path of a decline.
Long positions in XRP are a risky affair now until the correction period is over. However, once the leading altcoin bottoms out in price, accumulating it below the $2.70 mark is advisable. Another rally could be on the cards as institutional clients have gone bullish on Bitcoin. The development would make other cryptocurrencies surge in value and hit new yearly highs.
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