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- XRP, XLM, and LTC are gradually becoming investors’ delight owing to their cheap nature.
- These whales are optimistic of an ecosystem set to blossom for these coins.
Several altcoins are showing signs of potential recovery after a very rough week for the broad cryptocurrency industry.
Data from the crypto analytics platform Santiment shows that Ripple (XRP), its rival Stellar (XLM), and Litecoin (LTC) are leading the current bull run. The broad crypto ecosystem had been swept into a turbulent tide this past week. Prices of tokens declined suddenly as market capitalizations responded by plunging as network activities dropped.
Solana (SOL) on-chain activity experienced a decline per the data. Shiba Inu (SHIB) and Dogecoin (DOGE) also dropped by about 12% and even XRP plunged to the point where it lost all the gains made in July following Judge Analisa Torres’ ruling on its categorization as a security. The two top cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) were not left out of the dip as they experienced an 11.2% and 9.0% decline respectively. During this same period, Binance Coin (BNB) also tasted a downtrend with its price also dropping by 10.3%.
All of this negative momentum caused investors and traders to lose funds. Santiment is skeptical that the downtrend may persist, however, there have been signs of a bullish comeback with some altcoins. By the end of last week, XRP had experienced a decline of almost 20%, and by August 20th, the token was trading at $0.42.
Nonetheless, in the last 24 hours, the XRP coin has seen a 1.9% increase in price and is currently trading at $0.52. This suggests a recovery and some optimism for the XRP token which is bound to see a trickle to the broader market in the near term.
Whales Fill Their Bags, SEC Remains Adamant
Crypto whales are on the lookout for the next significant coin to invest in. Many of these investors are leveraging the drop in price as a perfect avenue to expand their holdings. The Litecoin halving event has attracted many whales with addresses holding between 100 to 10,000 LTC to the protocol, a category of buyers that are still accumulating the coin.
These whales are also perceiving potentials from XLM, as it is one of the super fast and cheaper networks to transact on. Stellar is also believed to have strong profit potential for investors seeking leverage even though the current market conditions do not appear so.
The broad crypto industry is generally known for its volatility, with prices fluctuating sideways without prior warnings, a feature that can either aid to impact the recovery attempt. However, some key metrics like regulatory challenges as well as macroeconomic events can also impact the nascent industry negatively.
The United States Securities and Exchange Commission (SEC) has been on a systematic crackdown of the crypto ecosystem with numerous enforcement actions filed in the past few months. Much more, the regulator has appealed a federal court’s recent ruling that XRP is not security. This position conflicts with the expectation of the market from the SEC with respect to its approval for a Bitcoin (BTC) Exchange Traded Fund (ETF) any moment from now.
