XRP, Ripple’s cryptocurrency, was hit hard today by the fall in the price of bitcoin (BTC). XRP has seen more than 5% of its value evaporate, reaching a crucial level. The big question now is whether the bulls can hold on here, or whether lower prices will be sought.
XRP crashes 5% to 50-day EMA
At the time of writing, XRP is down 5.26% from 24 hours ago, making it one of the biggest fallers within the top 100. There are only a handful of coins that have taken a bigger fall, with Bitget Token (BGB) leading the way thanks to a drop of no less than 14.74%.
XRP is currently on the market at a price of $2.07 per unit. That is no less than 24% lower than on December 17, when the price was still almost $2.73. If we go back a little further, the current price only hurts even more. On December 3, investors paid almost $2.91 per XRP token at the peak. If you had struck then, you would now be almost 30% underwater.
These are painful figures, but one should not forget how incredibly fast the XRP price has risen after Donald Trump’s victory in the American presidential elections. Two months ago, XRP was still for sale for around $0.50.
But still, the recent decline naturally causes some fear. Many people only got in after the stock turned upside down several times in a short period of time.
The price is now trading around the 50-day EMA (exponential moving average), which has historically played a crucial role as a support zone during consolidations or corrections. If XRP manages to hold its ground around $2.10, it would be a very bullish signal.
But if this level is lost, the price could visit the 100-day EMA around $1.86.
Another positive sign is that the Relative Strength Index (RSI), a key momentum indicator, has been able to reset during the downward price action. The XRP price had previously overheated, but with a current RSI of 55.42, XRP is now in a healthier position. This increases the chance of further increases once the market gains new impetus.
New chapter for XRP
XRP was one of the biggest gainers in the Trump-driven crypto rally. After years of being suppressed by the ongoing lawsuit with the US Securities and Exchange Commission (SEC), Trump’s plans for a pro-crypto regulation have given the stock a significant boost.
Criticized SEC Chairman Gary Gensler is leaving and will most likely be succeeded by crypto proponent Paul Atkins. This naturally causes speculation as to what impact this will have on the legal battle with Ripple.
In any case, Trump has promised to support crypto companies in the country as best as possible, which is of course good news for Ripple. Furthermore, Ripple has further bolstered investor sentiment with the long-awaited arrival of its own RLUSD stablecoin.
XRP rose by almost 500% in about a month, bringing it back close to its all-time high of $3.84 after five years.
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Source: https://newsbit.nl/xrp-daalt-hard-tot-cruciale-lijn-kan-de-koers-eindelijk-weer-stijgen/
