Ripple’s cryptocurrency token, XRP, has experienced a big drop in price recently. It has fallen by over 40% since its peak price of $3.65 in July. This means many people who own XRP might be worried or tempted to sell it. But a well-known cryptocurrency expert, called ERGAG CRYPTO, has shared reasons why investors should stay calm and not sell their XRP now.
What is XRP?
XRP is a cryptocurrency created by Ripple Labs. It’s used on a platform called the XRP Ledger to make fast and affordable money transfers. You can read more about it here.
Why Selling Now is a Bad Idea
ERGAG CRYPTO explained that selling right now might not be the best decision. They said this is a time when emotions like fear are leading people to sell, but it’s not a good financial move. Instead, they suggested holding onto XRP because the current market drop doesn’t necessarily mean the market is completely collapsing.
A market with falling prices is called a bear market. ERGAG CRYPTO said that bear markets often have brief periods when prices go back up before dropping further. These small increases in price are called relief moves. If you sell now, you might miss out on these relief moves.
Even though the market seems tough, the expert believes XRP’s situation is more of a reset and not a total failure. They called selling right now “a fatal mistake” because both possibilities—whether the market is about to go up again or down further—still suggest holding onto your XRP is better than selling it. They concluded their argument by saying, “Don’t sell here in either scenario.”
Who is Selling XRP?
To understand what’s happening, let’s first discuss who is NOT selling XRP. Investors who buy XRP through exchange-traded funds (ETFs) in the United States are not selling. ETFs are investment products that work like baskets of stocks or assets. They let people invest without directly owning cryptocurrencies. For example, a popular XRP ETF called XRPC launched in November. Since then, investors have put over $1 billion into these funds. This shows that many investors still believe in XRP’s potential, even during difficult times.
However, large investors, often called “whales,” are selling their XRP. Whales are individuals or organizations that own a significant amount of cryptocurrency. One analyst, Ali Martinez, reported that these whales sold 1.2 million XRP tokens in just one month. They had also sold over 1.5 million tokens earlier. This large amount of selling started when the new XRP ETFs were introduced, and XRP’s price has fallen by more than 25% since then.
At the moment, XRP is trading at less than $1.90. Cryptocurrency analysts consider this price level important. If XRP’s price doesn’t rise above this soon, it could drop further to $1.00, which would be a major loss for many investors.
In conclusion, while it might be tempting to sell XRP during its price drop, experts like ERGAG CRYPTO suggest holding onto it. They believe the market still has a chance to recover in the near future, and selling now could lead to unnecessary losses.