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The price of popular cryptocurrency XRP may be on the verge of a free fall. Such assumptions are inspired by the worrying price action of XRP that has occurred in the last few hours.
As can be seen on the price chart of the seventh largest cryptocurrency, it has seen a dramatic drop of around 2.38% in just two hours today. As a result, the key price support level represented by the 200-day moving average has been lost. What is even more painful is that it was lost on the daily chart, which adds to the severity of the situation due to the time frame.
Yuri MolchanHowever, this is not the end of the drama, as the price of XRP followed this drop with a bearish retest of the 50-day moving average on the weekly chart.
The last time something like this happened was perhaps the April-May performance of the popular cryptocurrency when, after weeks of testing this band as resistance, the price of XRP failed to break through and saw a massive sell-off that resulted in a low of $0.3823 in early July.
In total, the drop was nearly 33% and hundreds of millions of dollars in liquidations for bullish XRP traders.
Tomiwabold OlajideWhether such a development is possible remains a matter of speculation. Despite the negative omens, the cryptocurrency market seems to be more on the bullish side with, for example, $2.2 billion in crypto investment products last week - the biggest figure since July.
However, if XRP continues this momentum, it could mean a trend of its own for the popular cryptocurrency, and a hidden narrative not yet known to a wider audience.
Arman Shirinyan
Vladislav Sopov
Dan Burgin