Quick take:
A quick glance of the top five digital assets on Coinmarketcap reveals that Tether (USDT) has firmly taken the number three spot from XRP. Back in mid-May, the two digital assets were neck and neck fighting for the number 3 spot.
Back then, XRP needed to be valued at $0.20 to edge out Tether. However, with the marketcap of USDT continually increasing with the high demand for stablecoins, XRP will need much more fuel to eclipse Tether’s $9.1 Billion marketcap compared to its own at $7.8 Billion.
Furthermore, the fate of XRP is very much tied with that of Bitcoin. It is a known fact in the crypto-verse that the direction of BTC dictates the rest of the major digital assets. In this case, the correlation of XRP and BTC is high as ever (0.87) as illustrated by the chart below courtesy of Coinmetrics.
This, in turn, means that any drastic drop by Bitcoin will have a ripple effect on XRP. Bitcoin is currently oscillating within a tighter range of $$9,124 and $8,900 which means that a major move is getting closer. All analysis points to a dip by Bitcoin and such a move could cause XRP to lose the crucial support zone of $0.17.
Revisiting the daily XRP/USD chart, the following can be observed.
The fate of XRP in the crypto markets looks bleak as the fate of digital asset is tied at the hip with Bitcoin. This means that any drastic drop of BTC will lead to XRP
losing the currently crucial support zone of $0.17. XRP has also had a hard time recovering from the Coronavirus crash of mid-March. According to the team at Arcane Research, XRP has seen a relatively flat Q2 when compared to Bitcoin and Ethereum. This could point to a reduced interest in XRP and could lead to further losses for the remittance coin.