XRP might not be everyone’s favorite cryptocurrency, but it sure has a wild amount of trade volume. Fabled for its meteoric rises in 2017, it’s currently sat at one of its lowest levels since. The dawn of 2020 saw XRP rise sharply to the $0.2256 region, but it slumped heavily in the hours after. However, things aren’t looking great for XRP as multiple indicators are pointing to more negative movement coming from this popular cryptocurrency.
A Dreary January for XRP
Ripple is well known for selling off large tranches of XRP every month after unlocking it from escrow. Ripple has promised to stop, or at least slow down on the activity, but months later and Ripple is still dumping XRP by the boat load. Additionally, Ripple still sends a crazy amount of XRP every month to Jed McCaleb, the former CTO of Ripple. Both of these events cause the market supply of XRP to become saturated and therefore drives the price of XRP downwards. On the back of solid business development, these actions do nothing but harm the price of XRP – leaving many to wonder if it’s done like this by design to keep the systems running smoothly.
All Indicators Suggest Sell Your Bags
There are a myriad of indicators you can follow, but this time around the vast majority are all suggesting it’s a good time to sell. The MCAD Level 10 & 12 suggest a sell is imminent, while the SMA and EMA 10 through to 200 suggests that it’s time to sell. All of this culminates in the perfect storm to drive XRP back down lower. Currently, XRP is hovering around the $0.211 region. If this downward trend begins and continues, we could see XRP fall back to its early 2020 levels of $0.195. If this is the case, we could see it remain here before a wider bull market drags it upwards.
Can Bitcoin Come to the Rescue?
With the Bitcoin halving event just around the corner, all eyes are on altcoins to try and boost portfolios back to December 2017 highs. XRP is very much still tied to the price action of Bitcoin and the wider crypto market. So, if Bitcoin can indeed rally around the May halving event, we could see XRP get dragged upwards back towards the $1 region. If this does happen, it would be wise to sell as instead of being pumped by development it’s being pumped by the wider crypto market – a rather dangerous type of pump!
