Since soaring to a year-to-date peak of $1.9680 a few days ago, the XRP price has struggled. XRP has fallen for six days in a row and is currently trading at $1.31. Its market capitalization has also plummeted to over $60 billion.
Even as Ripple Labs and two of its executives face a big lawsuit brought by the SEC, XRP has had an exciting start to the year. In April, the currency increased by more than 140%, and it has increased by more than 630% since December, when it was at its lowest point.
The fourth-largest cryptocurrency has risen as a result of some traders’ defiance of the platform’s risks. Profit-taking by day traders and Ripple Labs’ problems are likely to be the main causes of the current decline.
The recent rally was fueled by the crypto universe’s overall strong results. In the last few months, all of CoinMarketCap’s top currencies have risen in value. Even, after a steep drop in December, XRP has recovered as investors hurry to buy the falls.
Recovery Mode for XRP Price:
The price of Ripple has been on a clear downward trend recently, as shown by the daily map. It has been falling for the past six days. The price has also fallen below the Fibonacci retracement level of 38.2%. The 25-day and 15-day moving averages are also supporting the price.
On a 4-hour chart, XRP has defended the 100 simple moving average (SMA) support level and now needs to rise above the 50 SMA resistance level at $1.56, which corresponds to the 50% Fibonacci level.
If the price of XRP breaks out at this stage, it will rocket to $1.66 and $1.77. However, if the XRP remains below the key resistance level of $1.23, it might easily fall to as low as $1.16.
However, a positive sign is that XRP is seeing considerable buying pressure, as the number of large investors with 100,000 to 1 million coins has risen by 150 so far this month.