- XRP price has dropped 15% over the last 24 hours to trade just above $1.07
- Yesterdays plunge reveals several crucial technical levels for Ripple.
- A daily closure below the $1.0363 support level will means that XRP holders will continue to count losses.
The cryptocurrency market crash following the troubled rollout of Bitcoin as legal tender in El Salvador has affected other crypto assets as well. Bitcoin is trading at around 46,198.59 at the time of writing having slid as much as 10% in 24 hours. Ripple was not spared as the XRP price saw a quarter of its value evaporate even as the court risks surrounding the SEC case lessen.
Ripple fell as much as 33% at one stage to $0.9291. Ripple then saw paring some of the losses while El Salvador was working through some first-day technical glitches. At the time of writing, XRP is struggling to hold above the all-important $1.08.
XRP Price Latest Plunge Placed Several Key Technical Levels Into Play
XRP price rallied approximately 33% from $1.0982 on August 31 to set a four-month high at $1.436 on Monday August 06. Yesterday’s crypto market plunge took the price of the cross-border remittances token as low as $0.9291. Even with today’s continued retreat, Ripples appears more vulnerable to further declines.
Note that Ripple managed to bounce off the key $1.0982 support level on Tuesday August 31 last week turning it into fresh support embraced by the lower boundary of a symmetrical triangle. A failure to close the day above this level flipping it into support once again may strengthen the current bearish bias.
Yesterday’s sell off was also saw the Parabolic SAR indicator flip from positive to negative. The indicator turned bullish on September 02. Yesterday it moved above the price sending a bearish signal. Note that as long as the Parabolic SAR remains above the Ripple price, the XRP price prediction is bullish in the near term.
Moreover, Ripple’s recent price swings reinforce the significance of the $1.0363 to $1.30 zone. This range has acted as resistance several over the last four months and even acted as support in April before Ripple hit highs of almost $2.0.
XRP/USD Daily Chart
As such is XRP price closes the day above the $1.0363 support level, it might rise above the $1.1 psychological level. A decisive bullish breakout will be achieved if Ripple overcomes the immediate resistance at $1.1518, coinciding with the lower boundary of the symmetrical triangle. If this happens, XRP could tag the four-month high above $1.40.
On the flipside, a daily closure below the $1.0363 support level could pull XRP further down to tag the 50-, 200- and 100-day SMAs at $0.9862, $0.9045 and $0.8634 respectively.
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Nancy Lubale
