XRP has been on a roller coaster ride in recent weeks. The cryptocurrency saw a tremendous volatility that began as news began to spread about the recent Spark token airdrop to holders.
This allowed the cryptocurrency to break its multi-year trading range between $ 0.20 and $ 0.30 and soar to a maximum of $ 0.90 on Coinbase and other exchanges.
This explosive rally caught the attention of traders and resulted in a price stabilization of around $ 0.60. Then news of a SEC lawsuit against Ripple impeaching XRP from being a security sent the token to the lower- $ 0.20 region, where it found serious buy-side support.
The news that Coinbase planned to scrap the cryptocurrency in the coming weeks led to a continuation of this sell-off, with the price dropping briefly below the crucial USD 0.20 support.
Traders are now anticipating further downward movement in the near term, with one analyst pointing to a decline into the region from $ 0.07 to $ 0.12, noting that further delisting coupled with declining liquidity could cause decline.
Some of the major market makers who have partnered with Ripple have cut ties with the company, which likely means that liquidity will fall soon.
XRP is under major support after wave of delistings
At the time of writing, XRP is trading just under 10% at the current price of $ 0.23, that is a huge drop from recent highs of nearly $ 0.30 set just a few days ago.
It also marks a recovery from the daily lows of $ 0.17 that were seen at the height of the sell-off this morning.
This rebound probably marks a short squeeze and may not last too long. It appears to be finding strong selling pressure around $ 0.24 which could continue to hold back growth.
Trader Claims Moving to $ 0.13 is likely
XRP’s woes may have only just begun as analysts now note that the cryptocurrency is very likely to see a sharp decline to the region between $ 0.07 and $ 0.12.
He notes those stock market listings, drying liquidity and the exodus of large funds will continue to put pressure on the price.
XRP: Imo the dust will be somewhere between .07-.12c in the coming weeks / months. Liquidity will dry up. ODL cannot be used on Bitstamp. More stock exchanges will stop trading. Larger players will continue to reduce risk and get rid of excess inventory. Just as I see it. “
Image Courtesy of Pentoshi. Source: XRPUSD on TradingView.
The coming days should shed some more light on XRP’s outlook as the result of this brief push should set the tone for where it will evolve in the coming weeks.
Featured image from Unsplash. Charts from TradingView.