The price of the native token of the XRP Ledger, XRP, has dropped down of a three-year consolidation pattern, signaling a potential turning point for investors, after a significant period in which its price oscillated between well-defined trading levels.
According to a recent post on the microblogging platform X (formerly known as Twitter) from cryptocurrency influencer Crypto Rover, XRP is “breaking down on this 3-year consolidation pattern,” in a price drop that occurred shortly after Ripple Chairman Chris Larsen confirmed that over $120 million worth of the cryptocurrency were taken from “a few” of his personal XRP accounts.
Consolidation periods are often interpreted as the market being unsure of the future direction of an asset, with the uncertainty stopping when the asset’s price breaks out or breaks down from the trading pattern.
XRP’s price is seemingly breaking down from the trading pattern after 213 million tokens were stolen from the personal accounts of Ripple Chairman Chris Larsen, who has confirmed law enforcement is already involved in the case and tht exchanges were contacted to freeze the stolen funds.
The incident comes at a time in which validators on the XRP Ledger have been moving to approve a controversial feature that will introduce a pivotal functionality for developers allowing the reversal of token transactions under specific circumstances, such as suspected fraud or aiding users in regaining access to their accounts in cases of lost credentials.
Notably, the XRP Ledger has also recently approved the launch of a built-in automated market maker (AMM) trading platform into the ledger, allowing $XRP token holders to earn income on-chain.
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