The price of XRP saw a low growth during the opening of the Asian market (9 am in Tokyo). In 45 minutes, the price fell from $0.3394 to $0.2998, which means that XRP saw a fall of 12%. Significantly, this move did not go in line with the general market sentiment, as BTC and ETH saw little gain during this period.
It is also worth noting that the sudden price increase occurred without any good news related to Ripple, such as the latest developments in the legal battle with the US Securities and Exchange Commission, or the XRP token. Therefore, the price movement is mainly influenced by the assessment.
However, at the time of publication, the price has already managed to return to $0.3322, erasing most of the sudden price losses. Ripple is currently facing resistance at $0.3333, which has not yet been broken.
There is an event that often attracts the attention of XRP investors at the beginning of the month, the release of 1 billion XRP from Ripple’s escrow account that happened yesterday, Sunday.
Under normal circumstances, this is unlikely to cause sudden decay. This event has been well known in the country for many years, although this time there is a little surprise. Although previously XRP was locked directly from the Ripple escrow account, this time it happened in an unknown account, according to Whale Alert. However, Bithomp identified the addresses as those of Ripple.
Yesterday, Ripple CTO Schwartz faced the question why the price of XRP is currently performing poorly and answered:
I don’t understand what affects the price of cryptocurrencies. But I will tell you what I believe to be true, even if I can’t back it up with facts. It’s just my opinion based on data, experience and maybe just feelings.
Are There Other Downsides in Store for the XRP Price?
Today’s move could mean another drop for the price. The recent rejection of the key resistance at $0.37 may contribute to this. On the surface, it will be important for investors if XRP regains the level at $0.343 a little bit.
Otherwise, there may be a lower income limit, as today’s decision also shows. Looking at the 1-day chart, another retest of the level at $0.2641 would be the most negative scenario at the moment. The price level can provide great support, where water can come into play. Investors should keep an eye on the $0.3205 level for now. If that breaks, the 6-month low at $0.2870 will be another area where XRP can see a bounce.
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