After Ripple dethroned Ethereum as the second cryptocurrency in terms of market capitalization, the gap just widened and widened. Ripple’s value exceeded $150 billion and according to some calculations, its CEO became one of the world’s richest people.XRP/USD surpassed $3.30 at some point.
Yet the quick ascent was followed by a quick descent. The move was sparked by Coinbase. The world’s No. 1 cryptocurrency exchange denied rumors that it was about to include Ripple in its offering, sending XRP/dollar down below $3.
We are now seeing an extension of that move. Ripple is down some 10% on the day and 20% in the past 24 hours. More importantly, XRP/USD dipped under critical support at $2.50.
It had already dropped under this level over the weekend, but the move wasn’t sustained and was followed by a quick recovery. In some cases, a move that commences with a false break can then be followed by a real move, especially if trading volume is higher.
As the chart below shows, Ripple/USD was initially rejected at this level on its way up. If the move is confirmed, the next level of support awaits at $2.30, followed by $2.20 and $2.10.
The downfall sends Ripple’s market cap back to third place according to CoinMarketCap. At the time of writing, Ethereum’s market cap is at around $113 while Ripple is struggling to hold onto the $100 billion mark.
Will Ripple recover or is will it continue falling to $1? It traded at much lower levels around Christmas.Get the 5 most predictable currency pairs