Ripple (XRP) hammered as major funds and exchanges withdraw support and liquidate positions, sending the price lower
The world’s fourth-largest cryptocurrency by market capitalization has suffered a disastrous week. At one point the price plunged by more than 65% following a series of events that unfolded after the SEC filed a lawsuit against Ripple and two of its executives.
XRP’s outlook now depends heavily on the long-term legal outcome and on whether exchanges maintain short-term support. Over the past week the token lost as much as 52.33% of its value. BTC and ETH fared considerably better on a relative basis, despite declines of their own, losing 3.22% and 12.32% respectively.
At the time of writing, XRP is trading at $0.27, representing a month-on-month decline of 57.30%.
XRP/USD
XRP’s price collapsed after the SEC announced legal action against Ripple and its executives, then fell further when funds such as Bitwise announced full liquidations of XRP and multiple exchanges said they would drop support for the token. The most recent sell-off was sharp, driving the price down to $0.21 before finding a floor.
XRP found solid support around the $0.21 level, a price area that was last relevant in July.
XRP/USD daily price chart. Source: TradingView
Technical indicators show XRP’s daily RSI flirting with the oversold zone. Trading volume surged during the decline while remaining relatively low on upward pushes.
The drop was halted at the $0.21 support area, which appears to be a significant short-term floor. XRP is likely to attempt to stabilize around these immediate support and resistance levels.
XRP/USD 1-hour price chart. Source: TradingView
On the 1-hour timeframe, the decline looks less like chaotic panic selling and more like a strong downward push driven by fundamentals and market reactions. XRP currently trades within a range bounded by $0.25 on the upside and $0.30 on the downside.
XRP is unlikely to fall much further unless additional negative developments emerge. Should further adverse news surface, another large sell-off could push the price below $0.15.