Ripple’s native cryptocurrency XRP has come under tremendous pressure this month as Bitcoin plummets to the $62,000 level and the digital market asset faces severe strain. The major altcoins are still in the red, with XRP falling to a low of $1.06 over the weekend, but managed to briefly recover from its slump. Uncertainty is high and traders are now tightening their wallets, fearing a further market crash.
Immediately after the drop, leading crypto analyst Egrag Crypto took note of X and shared a chart claiming that XRP is currently in an oversold zone. He stressed that the sudden price correction was due to excessive selling pressure stemming from talks between the US and Iran. The analyst argued that Ripple’s token may be undervalued in the short term, but the price will reverse.
Should you buy XRP now even though the crypto market is under pressure?
Taking an entry position now could be beneficial as XRP could bottom out on the charts. We also recommend that only risk-averse people monitor the tokens closely in the coming days. On Monday, the Middle East conflict took a new turn when Iran fired missiles at Israel, targeting an air base and the Mahashahr petrochemical plant. This shows that the conflict is far from over and there is a possibility that Israel may launch retaliatory attacks.
Asian stock markets reacted strongly to this development, with the three major indexes making significant corrections. Japan’s Nikkei Stock Average fell the most, dropping 5% in value and losing more than 3,000 points. India’s Sensex also fell by more than 500 points, while Hong Kong’s Hang Seng also fell by more than 400 points. This situation could cause the entire US stock market to start in the red on Monday. Therefore, in these trying times, only those who can tolerate losses can build entry positions in XRP.
(Tag Translation) Ripple
