Ripple’s XRP token is beginning to show signs of an attempted recovery after falling by 10 percent earlier today. After peaking at $0.423 early this morning, XRP fell into a deep decline following a similar crash by Bitcoin (BTC) and fellow cryptocurrencies.
In the space of just two hours, the XRP price dropped to $0.35 before getting a minor boost from some buying volume and recovering to $0.39. However, resistance at $0.40 proved too much for the asset and its declined continued all the way down to $0.357.
Now it appears a mild recovery is on the books, with XRP steadily increasing over the past few hours to regain two percent value and climb back up to $0.0387. A definitive trend reversal is not yet confirmed but the move indicates that XRP may be over the worst of the decline.
Where to from here?
The decline is not altogether unexpected since XRP has been in an increasingly overbought position since it began its bull run earlier this week. Wednesday saw Ripple’s XRP token take off on an epic rally that continued into Thursday and eventually reached a high of $0.476 – only just shy of the significant $0.50 price level. Extreme price increases such as these are usually unsustainable in the long run and analysts immediately began predicting an incoming correction.
Bitcoin was the first to retrace yesterday, with the majority of altcoins following close behind. XRP’s decline has been more subtle than others though and positive news sentiment might be enough to keep in the green. Despite today’s minor crash, XRP remains up 24 percent over the week.
What are analysts saying?
There is a fair argument for further declines from XRP, as analyst Jefe Caan points out on CryptoDaily, RSI remains overbought and the possibility of a ‘death cross’ is looming (when the 200-day moving average (MA) drops below the 50-day MA). In this scenario, it’s possible XRP could drop as low as $0.15 in price.
However, sentiment in the news remains strong, with Inc.com recently voting XRP as one of the 346 best places to work in 2019. This has no doubt helped to keep the price up, and XRP’s recent recovery is now very close to breaking back above $0.40. A continued uptrend that holds support above $0.40 would indicate a fresh wave of buyers entering the market and potential for further growth.
XRP is currently trading at $0.391 with a market cap of $16.5 billion.