The cryptocurrency market is bracing for a challenging end to the week, with XRP facing significant headwinds. The coin, which previously held the third position by market capitalization, has now been overtaken by Tether, slipping down to the fourth spot. This shift comes as the notorious debt crisis in the crypto arena continues to unfold, leading to a notable 10% decline in XRP’s value over the past week.
In the latest trading sessions, XRP’s price has dipped below the $3.00 threshold and currently hovers just above $2.80. The coin’s value dropped by 1.67% today, continuing a downward trend that began following widespread liquidations in the crypto market earlier this week. The latest drop from $2.99 corresponds with broader market declines, pushing XRP to test key support levels between $2.82 and $2.84.
Amidst this turbulence, Versan Aljarrah, the founder of Black Swan Capitalist, has put forth a bold theory regarding the role of XRP in addressing the global debt crisis. With the U.S. national debt surpassing $37 trillion and global debt bubbles reaching approximately $251 trillion—235% of worldwide GDP—Aljarrah proposes that global debt cannot be repaid under current conditions; it must be restructured. He suggests that tokenized liquidity, facilitated by neutral assets like XRP, is essential for this transformation.
In a recent statement, Aljarrah emphasized the necessity of converting massive amounts of debt into liquified assets using tokenized currencies, including XRP and regulated stablecoins. He notes that only XRP has the potential to unlock the trapped liquidity within these financial structures.
RippleNet’s On-Demand Liquidity (ODL) service has already proven effective in utilizing XRP for cross-border liquidity needs. Furthermore, Ripple is making strides in gaining traction, with institutions like DBS and Franklin Templeton utilizing tokenization on the XRP Ledger (XRPL).
The dialogue surrounding Ripple’s XRP and SWIFT has also evolved, with SWIFT conducting trials using blockchain systems such as XRPL and Hedera to assess potential integration into its cross-border payments framework. However, it remains uncertain whether SWIFT intends to adopt XRP Ledger as a primary settlement solution or if it will remain a secondary option within a broader interoperability plan.
In response to the recent price decline, traders appear to be liquidating numerous holdings. This trend coincides with a waning bullish momentum observed last week. Currently, the 30-day moving average for XRP is around $2.89, a crucial benchmark just above its trading price of $2.84. Should XRP’s price dip below this moving average, a bearish trend may emerge, signaling sellers gaining control in the market.
The $2.80 support line has become a focal point for traders. A fall below this threshold could lead to further declines, while maintaining above it may pave the way for a much-needed recovery. The coming hours will be critical in determining whether XRP can regain stability or if the prevailing bearish sentiment will cement its trajectory downward.
