Ripple XRP Falls to Key Support Level Of Around $0.50
The crypto market is mostly up once again, with Bitcoin pushing above $18,500 and retesting $19,000. Ripple XRP has however on its end reversed its uptrend.
The crypto market, for the most part, is up once again. The Bitcoin price has pushed back above $18,500 and has tried to retest $19,000. But Ripple's XRP, although it has been heavily correlated to Bitcoin's movements previously, has on its end reversed its uptrend.
Ripple XRP has pulled below the 30-day simple moving average (SMA) of around $0.50, which will turn down. The 30-day SMA is a key support level since the bullish trigger on November 3, but it is a resistance level now. If XRP's price action does not reclaim the $0.50 point, we can expect the 5-day SMA to cross below the 30-day SMA soon as a dead cross and this could exacerbate the drop.
Source: Binance, Ripple XRP Price Chart
Possible Reasons for XRP's drop
On the day the XRP price was trading at $0.2277, traders saw a surge in XRP that reached the record high of $0.78 on November 24, a 354.5% up. This was a crucial requirement for correction.
Recently, CNN's Julia Chatterley interviewed Ripple CEO Brad Garlinghouse on crypto regulatory clarity and initial public offering (IPO) timing. On December 12, the Spark token airdrop launched. The Flare Networks, which is a utility fork of Ripple, is working on delivering Ethereum-like functionality to the XRP Ledger. Crypto analysts expected Ripple's XRP price to surge following the airdrop, the cryptocurrency plunged in price following the event.
There were bearish warnings that can serve to explain XRP's drop in price. Earlier this month, Ripple released one billion tokens from escrow again. Additionally, some people also attributed the XRP plunge to Ripple founder Jed McCaleb's XRP dump. But an analyst going by the pseudonym "Credible Crypto" believes this may be a misconception.
What to watch for
Another analyst believed that Ripple's XRP price will trade between $0.16 to $0.25. Although he was wrong, he also made an unbelievable prediction on Bitcoin price as well in the boom of the crypto market.
Technically speaking, to reverse its downtrend, XRP must stand above $0.50 steadily, which was once the main support level.
Image source: Shutterstock
