- Ripple price sees massive outflows of funds as demand dries up.
- XRP price is too far off from the upper barrier to making a return and can only go one way down.
- Expect another 50% drop to $0.173 before a turnaround could be triggered.
UPDATE: Ripple continues to battle in court versus the US Securities & Exchange Commission in a case that continues to see lawyers from both sides make a succession of motions and objections without nearing a clear verdict yet. The latest development is the SEC objecting to Ripple Labs’ claim to seal “Exhibit 0” on several documents deemed “sensitive and confidential.” The court has yet to rule if emails sent and received by former SEC’s official William Hinman can be used as evidence. A positive resolution on that front would be seen as a huge win by Ripple. While witnessing this seemingly endless judicial saga, XRP price is trying to find a bottom above the key $0.30 support. The price of the remittance token has been stuck in a range between the aforementioned support and an interim resistance at $0.35 over the past week, and despite the dismal current crypto market sentiment, the fact that XRP price action has been closely linked to the court battle – and less attached to other cryptos – could trigger a rally if Ripple sees good news on that front.
Everything is down! EVERYTHING.
Except XRP/ETH, which has broken out of a 4.5 year trend, for only the third time.
Incidentally, the first of those times was right before SEC dropped the lawsuit on Ripple.
Lubin obviously didnt like it so told the SEC it was time. $XRP. pic.twitter.com/eM25haUSfX
— CryptoArsenal (@_CryptoArsenal) June 16, 2022
Ripple (XRP) has been thrown left and right into the woes of global markets, where central banks stirred the glass instead of just trying to calm it. Ultimately, it comes down to a chain reaction where high inflation eats into the disposable household budget and leaves less money to spend on luxury and cryptocurrencies if there is even something left to spend. That market rotation is why cryptocurrencies tanked below 1 trillion USD market capitalization and are why XRP price still has more room to go as the fire sale selling has not even begun.
XRP price has not seen a fire sale yet
Ripple price has more pain to come, and although not trying to sound apocalyptic, there are bound to be some casualties in this cryptocurrency winter. Only the strong and viable cryptocurrencies will survive the freeze against those that only got backed by some hipsters but do not hold any long-term importance of support from key stakeholders within the sector. If XRP is one of those remains to be seen, it is getting dangerous as the last line of defense is nearing.
XRP price is already too far off from $0.40 to still try and maintain that level to pop back to $0.50. Instead, the selling gravity will trigger another leg lower in the descent of XRP price and looks set to go all the way to $0.17. That amounts to another 50% correction to the downside in what looks to be an actual pain trade after hitting $0.90 back in end-March, totaling 67.90% of XRP thus far gone up in smoke.
XRP/USD weekly chart
A turnaround could be there when some favorable tailwinds are strong enough to go head to head against those headwinds tagged by inflation and recession fears. A peace breakthrough between Russia and Ukraine, for example, or should the ECB come with a solid response to avoid a new EU debt crisis, could open up some room for XRP recovery. A quick pop to $0.46 or $0.50 would be possible with either the 55-day Simple Moving Average or a pivotal historical level as targets.