Ripple (XRP) is getting crushed as major funds and exchanges drop their support and liquidate their positions, causing the price to push further to the downside
The fourth-largest cryptocurrency by market cap is not having a good week. Its price dropped (at one point) over 65% after a series of events that played out after the SEC announced a lawsuit against Ripple and its two executives.
XRP’s outlook is entirely dependent on the lawsuit in the long-run, and on the exchanges dropping support for Ripple in the short-term. When it comes to its week-over-week performance, XRP managed to lose a whopping 52.33% of its value. BTC and ETH both outperformed it by a large margin despite their prices declining, losing 3.22% and 12.32%, respectively.
At the time of writing, XRP is trading for $0.27, representing a 57.30% month-over-month decrease.
XRP’s price tumbled on news of the SEC filing a lawsuit against Ripple and its executives, but continued dropping further down as funds such as Bitwise announced full liquidation of XRP, as well as numerous exchanges announcing that they will drop support for the cryptocurrency. The most recent move towards the downside was sharp, bringing XRP’s price down to $0.21 levels before finding support.
XRP found decent support at the $0.21 support, a level that was last relevant in July.
XRP/USD daily price chart. Source: TradingView
The technical overview shows XRP’s daily RSI indicator flirting with oversold territory. The volume is heavy during downturns, while it’s quite light during retracements to the upside.
XRP’s downturn got stopped by the $0.21 level, which looks like a strong support. XRP will most likely try to find its position around the immediate support and resistance levels.
XRP/USD 1-hour chart. Source: TradingView
If we take a look at the hourly time-frame, we can see that XRP’s descent was not panic-selling, but rather a strong healthy push towards the downside based on fundamentals. XRP is now trading within a range, bound by the $0.25 and $0.30 levels.
XRP will most likely not go further to the downside unless more negative news comes out. In case such a thing happens, we can expect a major selloff that might bring the price below $0.15.