XRP has been on a roller coaster ride for the past few weeks. The cryptocurrency experienced immense volatility that began when news of the recent Spark token airdrop spread to holders.
This enabled the cryptocurrency to break its multi-year trading range between $ 0.20 and $ 0.30 and hit highs of $ 0.90 on Coinbase and other exchanges.
This explosive rally caught traders’ attention and caused prices to stabilize around $ 0.60. News of an SEC lawsuit against Ripple accusing XRP as collateral dropped the token towards the lower $ 0.20 region where it found serious buyer support.
News that Coinbase plans to delist the cryptocurrency in the coming weeks sparked a continuation of that sell-off, with the price briefly falling below the crucial $ 0.20 support.
The traders are now expecting a further downward trend in the short term. An analyst points to a downward move towards $ 0.07-0.12, noting that additional listings coupled with falling liquidity could result in a further decline.
Some large market-making companies that have partnered with Ripple have severed ties with the company, which likely means liquidity will quickly decline.
XRP falls under key support after a wave of delistings
At the time of writing, XRP is trading just under 10% at its current price of $ 0.23. This is a massive drop from recent highs of nearly $ 0.30 set a few days ago.
It also marks a rebound from its daily lows of $ 0.17 set at the height of the sell-off this morning.
This rebound is likely to mark a brief pressure and may not be too long lasting. It appears to be finding strong selling pressure around $ 0.24 that could further hamper its growth.
Trader Claims Move to $ 0.13 is likely
XRP’s problems may have only just begun as analysts are now determining that the cryptocurrency is likely with a sharp decline towards the region between $ 0.07 and $ 0.12.
He notes that stock market delistings, the drying up of liquidity and the exodus of large funds will continue to put pressure on price.
“XRP: Imo the dust will settle somewhere between .07 and .12c in the next few weeks / months. Liquidity will dry up. ODL cannot be used on Bitstamp. Other exchanges will cease trading. Larger players will continue to reduce risk and get rid of excess inventory. The way I see it. “
Image courtesy of Pentoshi. Source: XRPUSD on TradingView.
The coming days should shed more light on the outlook for XRP as the result of that brief press should set the tone of where it will go in the coming weeks.
Featured image from Unsplash. TradingView charts.