Renowned crypto analyst Benjamin Cowen has made an important revelation amid the recent bearish trends on the crypto market, shedding light on XRP's tumultuous journey in particular. Cowen's insights are rooted in the XRP price chart, and they remain fundamental knowledge on the digital asset's trajectory.
Per analysis, XRP has now retraced all the gains it accrued following the pivotal court verdict in the SEC case against Ripple back on July 13. On that momentous day, XRP experienced a staggering surge of over 101%. However, this peak has proven elusive since then, as the XRP price has steadily declined, interspersed with occasional short-lived upward corrections.
Remarkably, XRP's price has plummeted to a level reminiscent of its prelitigation status, currently hovering at a modest $0.475 per XRP. This dramatic reversal has raised questions about the narrative surrounding cryptocurrencies and their value.
Cowen emphasizes, "Narratives do not drive the market, liquidity does". Narratives and public sentiment, often driven by news, social media, or celebrity endorsements, can create speculative bubbles and euphoria around certain assets. However, Cowen suggests that such narratives are secondary to the fundamental factors of liquidity. When the hype dies down, assets with strong liquidity will likely remain more stable.
In a market often characterized by speculation and hype, such a statement serves as a sobering reminder of the critical role that liquidity plays in cryptocurrency valuations.