XRP has been on a rollercoaster ride throughout the past few weeks. The cryptocurrency saw immense volatility that began when news began spreading regarding the recent Spark token airdrop to holders.
This allowed the cryptocurrency to break its multi-year trading range between $0.20 and $0.30 and rocket to highs of $0.90 on Coinbase and other exchanges.
This explosive rally captivated the attention of traders and resulted in its price stabilizing around $0.60. Then, news regarding an SEC lawsuit against Ripple that accuses XRP of being a security sent the token plunging towards the lower-$0.20 region, which is where it found some serious buy-side support.
News of Coinbase planning to delist the cryptocurrency in the coming weeks sparked a continuation of this selloff, with its price briefly sliding below its crucial $0.20 support.
Traders are now anticipating further downside in the near-term, with one analyst pointing to a move down towards the $0.07 to $0.12 region, noting that further exchange delistings coupled with sliding liquidity could cause a further descent.
Some major market-making firms that worked with Ripple have cut their ties with the company, which likely means that liquidity will begin descending rapidly.
XRP Plunges Below Key Support Following Wave of Delistings
At the time of writing, XRP is trading down just under 10% at its current price of $0.23, this marks a massive decline from recent highs of nearly $0.30 that were set just a few days ago.
It also marks a recovery from its daily lows of $0.17 that were set this morning at the height of the selloff.
This rebound likely marks a short-squeeze and may not be too long-lasting. It appears to be finding some strong selling pressure around $0.24 that may continue hampering its growth.
Trader Claims Move to $0.13 is Likely
XRP’s woes may just be getting started, as analysts are now noting that there’s a strong possibility the cryptocurrency sees a strong decline towards the region between $0.07 and $0.12.
He notes that exchange delistings, drying liquidity, and the exodus of large funds will continue placing pressure on its price.
“XRP: Imo the dust will settle in the next few weeks/months somewhere inbetween .07-.12c. Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading. Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”
Image Courtesy of Pentoshi. Source: XRPUSD on TradingView.
The coming few days should shine some more light on XRP’s outlook, as the result of this short squeeze should set the tone for where it will trend in the weeks ahead.
Featured image from Unsplash. Charts from TradingView.