After yesterday slump in Bitcoin’s price, XRP and other alts are trying to stay alive. Even before this, XRP’s price has been steadily collapsing with a few spikes. As of August 15, price of XRP reached a level that was previously seen almost a year ago.
The slump in XRP’s steep decline must have hodlers shaking in their boots, as the price of 1 XRP was at $0.25, however, it is still the third-largest cryptocurrency in the world. The future of XRP, at this point, looks bleak, but then again, what goes up, must come down and so far, XRP has done nothing but go down.
Short-Medium Time Frame
XRP price broke out of a descending triangle on July 11, and has been collapsing since then. As seen in the above chart, two major drops have been witnessed since then: the latest drop came yesterday when Bitcoin slipped. An interesting thing about the last drop is that the price of XRP hit a low of $0.242, this was last seen on August 14, 2018, exactly a year ago. What are the odds of that happening? Exactly a year ago?
Coincidences apart, this point will now act as a support for XRP in the foreseeable future. The price of XRP bouncing from here seems more likely than proceeding to dip. The chances of that happening are present, yet infinitesimally small.
Higher Time Frame
The price gets clearer and less noisy at this time frame. As seen above, the price has been sticking at the lower end for more than a year now. The only noticeable pump was in September 2018, when the price of XRP pumped from $0.2663 to $0.7644 in a week.
On one hand, if Bitcoin proceeds to dip further down, XRP will humbly follow it to the ends of the road, this is mainly due to an extreme correlation that exists with Bitcoin. Although the correlation of XRP with Bitcoin has reduced from the peaks, there is still a high correlation of 0.72 between them.
The target for XRP if it proceeds lower, hand-in-hand with Bitcoin is $0.20.
On the other hand, the path with least resistance and the most likely path for XRP s to head up from the $0.244-support. The question that remains is, “what’s the upside target?”
- The 1st bounce from the support would be a 45% rise in the next 2 to 3 weeks, which puts the price of XRP at $0.3764.
- The medium to short term target would be a logical retracement from here. This would be followed by another major pump to $0.6217, which would be a 70% pump from the previous high, or an overall pump of 150%.
All of these predictions are dependent on Bitcoin’s movement. If Bitcoin continues to hemorrhage, then all of this would be obsolete.