Ripple has dipped but is following a different path to the other major coins.
- A steady decline has seen Ripple’s value dip by 13% over the last week.
- Trading volumes have been increasing when the price dips.
- Further falls of just a few cents could lead to a more substantial fall.
Ripple has lost about 13% from its value over the last week although its drop has been more gradual than the shift’s we’ve seen with some other coins such as Bitcoin and Ethereum over a similar period. Having started the last seven day period at just under US$0.53, XRP moved up to $0.54 before falling to as low as $0.45.
At that point, on Monday, trading volumes picked up from $195M/24hr to about $370M/24hr as the price worked its way back to $0.45 before dipping and slowly coming back up to $0.46 which is where it sits at the moment.
The general consensus across the market is that XRP is struggling to maintain any gains above $0.47. That’s a view backed by NewsBTC and CryptoGlobe. Cryptoglobe says that if the $0.44 s broken that the next level we’ll see support is could be as low as $0.24 which is a long way below the lowest values we’ve seen this year and roughly where Ripple was last December and a fraction of the $3.79 value we saw in early January.
Smartereum’s view is more optimistic with their analysis’s suggesting an upward move is developing. I think that’s a premature prediction given the upturn they’re looking at is only a few hours old and could be little more than a small dead-cat bounce.
While Ripple’s price has been hit, along with almost every other cryptocurrency in the price plunge we’ve seen over the last month, it’s interesting to note its fall has been more gradual and doesn’t feature the big red candles we see with other some of the other coins. That suggests some folks are backing away but not with the same degree of panic and fast selling as other coins.
Ripple’s platform is part of a long-term play and is seems some traders are playing a longer game. Increased trading volumes when the price dips suggests there’s still confidence in the platform, which is focused on solving some of the challenges of currency exchange in the finance sector. The fact it’s finding a way to integrate with existing financial markets might give the market confidence that it will once again increase in value.
But we’re also seeing a significant market correction take place so there may yet be some more pain before there’s any gain.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
This information should not be interpreted as an endorsement of cryptocurrency or any specific provider,
service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and
involve significant risks – they are highly volatile and sensitive to secondary activity. Performance
is unpredictable and past performance is no guarantee of future performance. Consider your own
circumstances, and obtain your own advice, before relying on this information. You should also verify
the nature of any product or service (including its legal status and relevant regulatory requirements)
and consult the relevant Regulators’ websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.