Yerevan (CoinChapter.com) – XRP, the native token of Ripple Labs, remains clear of sharp declines. At the same time, other cryptocurrencies fail to recover from the crisis, partially brought on by Elon Musk, the CEO of Tesla and Space-X.
The billionaire entrepreneur caused quite a swirl on the crypto market after he announced on May 13, that Tesla will no longer accept Bitcoin (BTC) as payment for their electric vehicles. Allegedly, the CEO was concerned about the considerable carbon footprint of mining. That statement raised many eyebrows as Mr. Musk clearly knew about the repercussions of mining all along.
The mayhem on social media platforms fueled a panic drop in Bitcoin price. The token plummeted to $40,350 in the European session Wednesday, losing 29 percent in a week. Many smaller cryptocurrencies sunk with the ship and saw a sharp decline in price. Ethereum(ETH), the second-largest coin by both market cap, and price lost 27 percent since May 13. Litecoin (LTC) went down 30 percent in the same period. Even Dogecoin (DOGE) lost 18 percent, despite Mr. Musk’s efforts to keep it from tanking.
Why is XRP still afloat?
XRP, unlike other cryptos, was exhibiting bullish bias, before consolidating around the $1.40 price margin. The token broke out of the bullish Symmetrical Triangle pattern it was trading in earlier. The setup predicted growth up to $2.40 for XRP. However, given the current climate on the market, no prediction is solid enough to pinpoint the price in the upcoming sessions. The $1.39 value has particular significance for the token, as it will determine the continuation patterns and sentiment in the future.
There are several circumstances throwing XRP a lifeline. The Securities and Exchange Commission lawsuit against Ripple Labs is one of them. Despite the fact that the proceedings have been ongoing since Dec 2020, many XRP investors and Ripple supporters see a light at the end of the tunnel for the blockchain startup as another judge-overseen meeting approaches, scheduled for May 21.
Amid the ‘mining carbon footprint’ scandal, XRP stands out as a much ‘greener’ crypto coin. Naturally, the exact amount of carbon dioxide emissions is extremely hard to even estimate, but Ripple Labs has long introduced a program for eco-solutions. According to this trajectory, Ripple aims to go zero-emission by the year 2030. Considering the current controversy, the ‘greener’ coin got the traders’ attention. Some experts even advised Elon Musk to turn to XRP as a Tesla car payment method, if he’s worried about the environment.
Despite the chaos on the crypto market as a whole, XRP still manages to keep afloat. While not exhibiting strong bullish sentiment, the token still managed to avoid losses and even gained 10 percent. Whether XRP can stay in a bullish trend is not clear, but as of the moment, the token is going stronger than many bigger cryptocurrencies.