The cryptocurrency giant Ripple has experienced another turbulent week as prices fall 8.05% over the past 7 days as they break below the $0.50 threshold. Price action is currently trading around $0.4848 mark and is up by 5% from the lows 24 hours ago.
The cryptocurrency created by Ripple continues to hold its 3rd rank position in terms of overall market cap with $19.03 billion dollars. This is down from the market cap high seen last week of $21.7 billion by a total of $2.67 billion.
The recent break below $0.50 creates new lows that the market has not seen since early April. Let us analyse price action over the short term for a clearer perspective.
XRP/USD – SHORT TERM – DAILY CHART
Looking at the chart above, we can see that over the past 24 hours, price action dipped below far below the lows seen during early April at a price of $0.45. This sent waves of fear throughout the market as prices put in lows not seen since December 2017.
We can see that price action had experienced a bullish run during April as prices rose from a low of $0.47 to a high close to $1. This bullish run could provide some hope to XRP holders as price action is currently trading around the same price as the base of April’s bullish run.
We can see that price action has since recovered slightly as the market was able to push price action back above Aprils low day close level at $0.47 (marked by the purple line on the chart). If price action can stay above this level, then we could hope for the bulls to push prices back toward near term resistance located at the short term .886 Fibonacci Retracement at a price of $0.51. Following this, a break above $0.55 would leave the market free to rally and test June’s monthly high around $0.70.
Alternatively, a break below $0.47 once again would cause XRP holders hands to shake. The nearest level of support is located at the absolute low seen during April around $0.45 followed by the 1.616 Fibonacci Extension at $0.42.
The technical indicators are largely favouring the bears at this moment in time. The RSI is trading well below the 50 handle and we would need to see it make its way toward the 50 handle to indicate that the bearish momentum within the market is fading.
Let us analyse the market further by looking at price action against BTC.
XRP/BTC – SHORT TERM – DAILY CHART
Looking at the short term daily charts above, we can see that during April price action rose from a low of 7000 SATS to a high of 11000 SATS, a price increase of 60%. Since then price action has fallen and retraced close to where it is currently being traded at the .786 Fibonacci Retracement at a price of 7794 SATS.
Price action has broken below the .786 Fibonacci Retracement but is still yet to break below May’s lows at 7430 SATS. If the market can bully its way back up above the .786 Fibonacci Retracement and eventually above 8000 SATS then the nearest level of resistance will come at 8478 SATS which is the .618 Fibonacci Retracement.
Alternatively, if price action continues to travel lower, the nearest level of support beyond May’s low is located at the .886 Fibonacci Retracement at a price of 7386 SATS.
Markets have continued on their downward spiral this week and XRP has been no exception.
Although we may have reached April’s low relative to the USD the price drops could still be coming as relative to BTC price action still looks like it could fall further. It will be important to continue to watch the market closely as it unfolds over the course of the next 7 trading days.