As the broader digital currency ecosystem is wriggling out of its accrued losses over the past 24 hours, XRP has joined the uptrend. Though its growth is mild at this time, its accrued 1.12% gain to $0.4783 is a sign that the positive sentiment surrounding the digital currency is returning.
While the cryptocurrency was not recently indicted as a security following the recent crackdown on Binance and Coinbase exchanges by the United States Securities and Exchange Commission (SEC), it has equally felt the brunt of the impact since the start of the month. Thus far in June, XRP has shed as much as 7.7%, and the coin dropped below the $0.5 support level.
In the short term, reclaiming the $0.5 price level remains its short-term target, a feat that can be achieved should the buying momentum be sustained. The overnight sell-off was so deep that the trading volume, per data from CoinMarketCap, is still pegged at a more than 44% deficit. For the resurgence to hit this new target, XRP must revert this negative trend.
Refocusing XRP utility
Despite the impact of broad regulatory crackdowns in the U.S., XRP has been refocusing on its broad utility as an anchor for its current and potential investors to hang onto. Through Santiment data, it was revealed that XRP has been gaining a lot of traction lately, with its accumulation comparable to that of Bitcoin (BTC) and Ethereum (ETH).
XRP is a dominant factor in XRPL, whose innovation is showcasing a more promising future for smart contracts in the broader XRP ecosystem. XRP has been tipped as the potential biggest beneficiary should the lawsuit between its associated payment firm, Ripple Labs Inc and the U.S. SEC end in the former's favor.
Alex Dovbnya
Vladislav Sopov