XRP Price Takes a Hit Amid Global Uncertainty and Significant Token Transfers
Summary:
Mirroring the overall bearish sentiment in the cryptocurrency market, XRP has seen a decline in its price. Factors contributing to this include the ongoing Israel-Palestine conflict leading to traders abandoning cryptocurrencies and significant XRP transfers at the weekend. Technical analysis suggests a potential 50% price drop in 2023 due to a Bump-and-Run-Reversal (BARR) pattern. However, this scenario could be invalidated if XRP manages to regain support from its lead-in trendline and its exponential moving averages (EMAs).
In line with the broader cryptocurrency market, the price of XRP (XRP) fell today. The cryptocurrency saw nearly 1.5% slide in its price to $0.50 on Oct 10, representing a week-to-date loss of 4.5%. This mirrors the downward trend seen across leading crypto assets such as Bitcoin (BTC) and Ether (ETH) which declined by 1.8% and 3.5% respectively.
Today's significant factors contributing to XRP's price plunge will be discussed in detail.
The ongoing conflict between Israel and Palestine has led most crypto traders to abandon top cryptocurrencies, including XRP. For instance, since Hamas's attack on Israel over the weekend, the total capitalization of the crypto market has plummeted by over $32 billion. Conversely, traditional safe-haven assets like U.S. Treasuries and gold have seen an increase in demand.
Historically, geopolitical conflicts tend to have a predominantly negative immediate impact on cryptocurrencies. One example is when the crypto market's value fell by over 11% following the outbreak of the Russia-Ukraine conflict on Feb. 24, 2022. However, most of these losses were quickly recouped.
The decline in the price of XRP this week is also linked to huge token transfers at the start of the week and over the weekend. On Oct. 9, Whale Alert brought attention to a transfer of 60 million XRP valued at approximately $30 million from an address associated with Ripple to an unidentified wallet. Another wallet sent over $15 million to the Bitstamp crypto exchange.
Technical analysis of XRP suggests a 50% crash in 2023 due to the formation of what appears to be a Bump-and-Run-Reversal (BARR) pattern. A BARR pattern emerges when excessive speculation abruptly pushes an asset's price higher, potentially leading to a "bull trap" situation. The pattern is confirmed once the price dips below its lead-in trendline, falling by a magnitude comparable to its maximum height.
If this scenario played out, XRP's price could plummet by 50% to $0.25 in the coming months.
However, this bearish perspective may be invalidated if the XRP price succeeds in reclaiming the support of the lead-in trendline and its 50-3D (the red wave) and 200-3D (the blue wave) exponential moving averages (EMAs).
If XRP manages to accomplish this, its price could increase to around $0.69 on its 0.236 Fib line, which is approximately 40% up from its current levels.
Please note that this article doesn't include investment advice or recommendations. Investing and trading involve risk, and individuals are advised to carry out their own research before making a decision.
Published At
10/10/2023 2:10:16 PM
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