Ripple, the cryptocurrency founded by Ripple Labs, has experienced a 2.12% decrease in price over the past 24 hours and a 11.48% decrease in price over the past 7 days.
The cryptocurrency currently sits at rank 3 in terms of overall market cap across all cryptocurrencies. Ripple has market cap of $22.85 billion and is trading hands at a price of $0.58, at the time of writing.
The markets have experienced a sharp selloff across the board as the overall market cap fell by over $20 billion on Sunday, and Ripple was no exception and felt the hit.
XRP/USD – SHORT TERM – DAILY CHART
Looking at the market from a long term perspective, we can see that XRP has experienced a year of continued downward pressure. Price action went from a low of $0.15 in December 2017 to a high of $3.53 put in early January 2018.
Since then, price action has fallen to the .886 Fibonacci Retracement at a price of $0.54. This a Fibonacci Retracement taken from the bullish run seen in December 2017.
If we are to expect a bullish trend to form, we would first need the .886 Fibonacci Retracement level, $0.54 to hold. We would then need some bullish momentum to take us above the highs seen last week in June and then on to test previous strong resistance around $0.87. If price action manages to break and hold above this resistance, then we could expect more bullish pressure throughout the second half of 2018.
XRP/USD- SHORT TERM – DAILY CHART
Looking at the market from a short term perspective, we can see that Ripple had experienced a decent bullish run in the month of April as prices rose over 110% from low to high. Since then we can see that price action has fallen and found support on the .786 Fibonacci Retracement of the April bullish run, at a price of $0.56.
If prices break below $0.56 then the next level of support is located at $0.54 which is the long term .886 Fibonacci Retracement mentioned above. Below this, levels of support are $0.50 and $0.46.
Alternatively, if price action manages to gain some bullish momentum after holding above $0.56, we may see the bulls press price toward near term resistance located at $0.70.
The technical indicators largely favour the bears as the 7-day EMA and 21-day EMA have crossed below each other indicating the short term bearish pressure within the market. To make matters worse, the RSI indicator is also well below 50 showing the increased bearish momentum within the markets.
If the market can make it past this bear cycle, Ripple has an exciting future ahead of it. With over 100 partnerships with major financial institutions and banks, XRP has the potential to continue growing over the long term.
In the short term, it is important to remain patient and only let market action dictate potential positions as ripple trades within this range bound between the .886 and .786 Fibonacci Retracements at prices of $0.54 and $0.87 respectively.