- XRP’s price has dropped 2.68% in the last 24 hours according to CoinMarketCap.
- A short-term bearish cycle has started for the remittance token’s price.
- Technical indicators suggest that XRP’s price may continue to drop in the next 24-48 hours.
Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb.
Ripple’s main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
The token used for the cryptocurrency is premined and utilizes the ticker symbol XRP. Ripple is the name of the company and the network, and XRP is the cryptocurrency token. The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies or networks – as a sort of temporary settlement layer.
Current Market Standing
Ripple (XRP) is ranked as the 6th biggest crypto by market cap, according to CoinMarketCap, and experienced a drop in price of 2.68% to take its price down to $0.399. This also puts its total market cap at approximately $20.269 billion at press time.
The 24-hour drop in XRP’s price has added to its negative weekly performance. At press time, XRP’s price is down 3.19% over the last 7 days.
XRP’s price dropped below the key support level at $0.4050 in the last 24 hours, which subsequently resulted in it dropping below the 9 and 20 EMA lines on its 4-hour as well. The remittance token’s price is now lingering around the mini-support level at $0.3951.
The relative positions of the 9 and 20 EMA lines on XRP’s 4-hour chart suggests a short-term change in momentum – favoring bears over bulls. Furthermore, both 9 and 20 EMA lines on the 4-hour chart are pushing XRP’s price down currently.
This bearish cycle may be coming to an end, however, as the RSI line is sloped positively towards the overbought territory. Despite this, the RSI line on XRP’s 4-hour chart is still bearishly positioned below the RSI SMA line on the 4-hour chart.
An early confirmation of the trend reversing in favor of bulls will be when XRP’s price breaks above the 9 and 20 EMA lines on its 4-hour chart.
Zooming out to the daily timeframe, the situation for XRP is at risk of turning bearish for the rest of the week. This is because the 9-day EMA line is looking to cross bearishly below the 20-day EMA line.
XRP’s price is currently trading below the 9-day and 20-day EMA lines. Bulls have, however, stepped in a desperate move to elevate XRP’s price above the 2 EMA lines before the end of today’s trading session. This is indicated by the amount of buy volume that has entered XRP’s daily chart today.
The daily RSI indicator is also currently flagging bearish, with the daily RSI line positioned below the RSI SMA line. In addition to this, the daily RSI line is sloped neutral – suggesting that XRP’s price will either consolidate at this level or drop further in the coming 24-48 hours.
A confirmation of the bearish thesis will be when the 9-day EMA line crosses below the 20-day EMA line in the next 24 hours. Should this happen, then XRP’s price could drop to as low as $0.3762.
Given the bearishness expressed on XRP’s 4-hour chart and the 9-day EMA line looking to cross below the 20-day EMA line, it’s fair to say that the price of XRP will drop in the next 24-48 hours.
This bearish thesis will be invalidated if XRP’s price is able to close today’s trading session above both the 9-day EMA and 20-day EMA lines. If this happens, then XRP’s price may look to consolidate.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.