Ripple has continued to bleed out like the majority of the cryptocurrency market, dropping XRP a further 4.26% over the past 24 hours. Ripple is currently being traded at a price of $0.26 and has suffered a 7-day price decline totalling 30%.
Who’s adopting Ripple?
Price action continues to fall despite the adoption use cases for Ripple continue to increase this week as PLAAK and CryptoPay announce the integration of Ripple into their respective platforms.
PLAAK is a cryptocurrency exchange that has championed Ripple and decided to add Ripple pairs such as XRP/BTC, XRP/ETH and even XRP/AUD. CryptoPay provides a service that allows users to spend their cryptocurrency through debit cards. It is also a wallet provider which will now allow users to store their Ripple coins.
Where does Ripple stand in the rankings?
Ripple continues to hold its third-place position in terms of overall market cap across the entire industry. The 60-month-old cryptocurrency has a total market cap value of $10.47 billion and has experienced a 40% decline over the past 30 trading days. To make matters worse, XRP has currently dropped a total of 93% from its ATH price of $3.84.
Let us continue to analyse price action for Ripple over the recent period.
XRP/USD – SHORT TERM – DAILY CHART
A quick update from our last analysis
In our last analysis, we had expected that XRP would continue to fall if you have not read the analysis you can find it here. We had mentioned that if price action continued to drop below the downside 1.272 Fibonacci Extension (drawn in yellow) priced at $0.33, we would expect support to be found at the downside 1.414 Fibonacci Extension (drawn in orange) priced at $0.29 followed by the 1.618 Fibonacci Extension (drawn in turquoise) priced at $0.23.
Where are we now?
We can see that following our previous analysis, price action fell and found support, briefly, at the 1.414 Fib Extension for a short period of two days before breaking and falling lower.
Price action, over the previous session, has found support at a short-term downside 1.272 Fibonacci Extension (drawn in purple) priced at $0.25. This Fibonacci Extension is measured from the bearish two month period witnessed between May/June as price action started from a high of $0.99 on April 24, 2018, and fell to a low of $0.41 on June 29 2018.
Where can we go from here?
As mentioned in our previous analysis, if price action breaks below the $0.25 handle we expect immediate support to be located at our original downside 1.618 Fibonacci Extension (drawn in turquoise) priced at $0.23. Further support below this can be expected at the psychological round number level of $0.20 followed by the longer term downside 1.414 Fibonacci Extension (drawn in purple) priced at $0.17. If price action continues further lower and reaches $0.15 it would complete a 100% retracement of the December 2018 bullish run.
What if the bulls can take control?
IF some bullish pressure re-enters the market, we expect immediate resistance to be located at the previous 1.414 Fibonacci Extension level (drawn in orange) priced at $0.29. Further resistance above this level is expected at the 1.272 Fibonacci Extension level priced at $0.33. If the bullish market can persist and push prices even higher we expect significant resistance to be located at $0.45 which coincide with April 2018’s lows.
What are the technical indicators reading?
The technical indicators continue to heavily favour the bears at this moment in time. RSI is still in extreme oversold conditions and shows no signs of attempting to break out of this opening scenario. For a sign that the bearish pressure is beginning to fade we will look for the RSI to make its way back toward the 50 handle.
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