The cryptocurrency scene is dyed red today. Already, the total market cap has tanked and is below the $250 billion mark. And Bitcoin, the most valuable, and the indicator used by traders, has fallen below the $ 8,000 mark.
The XRP Price Meltdown
Interestingly, this is less than 60 days before the definitive halving which punters have said could lead to a serious emission shock that could re-price it higher, lifting other coin’s prices. XRP could be one of them.
However, with recent price action and correlation, its poor form in the face of soaring token prices, it may as well turn out that falling BTC and altcoin prices may shore XRP prices.
Only time will tell. For now, analysts have their sights on 30 cents and how prices will react at the 20 cents level. 17 cents is the lower end and Dec 2019 lows, a key support level.
Ripple’s CTO: Validators can’t destroy XRP in Escrow
Even so, in the midst of capitulation, supportive fundamentals flow.
For instance, just recently, David Schwartz, the CTO of Ripple, the for-profit company that owns a majority of XRP, which is issued officially by Ripple Labs, an independent company what runs the XRPL, said XRP can’t be destroyed by validators. The coin is pre-mined and runs on a transparent ledger.
As a safety measure, it would take other validators, of whom 51% are ran by third-parties, not Ripple as part of their decentralization strategy, for them to destroy coins held in escrow—60 billion XRP.
XRP/USD Price Analysis
With confidence on the network’s protection, holders are deep in red. Week-to-date, XRP is down 9%, but stable in the last trading day, adding 1%.
The coin’s price is also 2 cents above an important line and how prices react at 20 cents in days ahead could determine the trajectory oXRP/USD Price Analysisf prices in the medium term. With prices trending in between the 61.8% and 78.1% Fibonacci level, it is imperative that bulls flow back and prevent the current hemorrhage for trend continuation.
Any convincing fall below the 78.1% Fibonacci retracement level could trigger further losses to 17 cents, or Dec 2019 lows.
On the flip side, for buyers to be in control, prices should break above 25 cents preferably with high trading volumes.
There, buyers can aim at 34 cents or Feb 2020 highs.
At present state, traders can flow the stability, or fade Feb 2020 trend and take profit at 17 cents because of yesterday’s accelerate fall.
Chart courtesy of Trading View—Bitfinex
Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.