XRP has been on a rollercoaster ride for the past few weeks. The cryptocurrency saw a major volatility that started when news began to spread about the recent Spark token airdrop to the holders.
This prompted the cryptocurrency to smash its multi-year trading range between $0.20 and $0.30 and the rocket to $0.90 on Coinbase and other exchanges.
This explosive surge captivated the attention of traders and resulted in a price stability of about $0.60. Then news of the SEC lawsuit against Ripple, which accuses XRP of being a security, sent the token plummeting into the $0.20 zone, which is where it finds some significant buy-side help.
Coinbase’s reports of plans to delist cryptocurrency in the coming weeks sparked a continuation of this auction, with its price briefly dipping below its critical $0.20 support.
Traders are now expecting more declines in the near term, with one analyst pointing to a step down to the $0.07 to $0.12 zone, noting that further exchange delisting coupled with a sliding liquidity could lead to further declines.
Some of the major market-making firms that operated with Ripple have broken relations with the company, which is likely to mean that liquidity will begin to decline rapidly.
XRP Plunges Below Key Support Following Wave of Delistings
Traders are now expecting more declines in the near term, with one analyst pointing to a step down to the $0.07 to $0.12 zone, noting that further exchange delisting coupled with a sliding liquidity could lead to further declines.
Some of the major market-making firms that operated with Ripple have broken relations with the company, which is likely to mean that liquidity will begin to decline rapidly.
Trader Claims Move to $0.13 is Likely
XRP’s woes could only begin, as analysts are now finding that there is a clear potential for cryptocurrency to see a sharp fall in the area between $0.07 and $0.12.
He states that the exchange rate, the drying of liquidity and the flight of large funds will continue to bring pressure on its price.
“XRP: Imo the dust will settle in the next few weeks/months somewhere inbetween .07-.12c. Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading. Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”
Image Courtesy of Pentoshi. Source: XRPUSD on TradingView.
The next few days are expected to shed a little more light on XRP’s outlook, as the result of this quick tightening is expected to set the stage for where it will be in the coming weeks.
Featured image from Unsplash. Charts from TradingView.
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