Ripple coin was looking pretty good until the flash crash in the crypto market earlier this week, when El Salvador made BITCOIN legal tender. Ripple increased from above $0.50 in late July, to 1.42 early this week. But the crash sent Ripple coin down to $0.92 – that’s a 35% loss, which was more than most cryptos suffered.
Ripple XRP Analysis Daily Chart – Ripple Reverses from the 200 SMA
The bounce off MAs didn’t last much
The 200 SMA (purple) came to the rescue and stopped the decline. That moving average, together with the 50 SMA (yellow) provided support on the daily chart, and early this morning, we saw a bounce in XRP/USD, which sent this cryptocurrency from $1.08 to $1.24. But, as the daily candlestick shows, the jump only lasted about an hour, and then the price came back down, falling to $1.05. So, Ripple remains uncertain, as we explained in our 2021 Ripple forecast .
Ripple XRP Analysis H1 Chart – Ripple Reverses from the 200 SMA
The bounce ended at the 200 SMA earlier today
Looking at the H1 chart, we see that Ripple coin was consolidating in a range between $1 and $1.10 and the range was getting narrower, indicating a breakout soon. The breakout went to the upside and it happened pretty fast, but the 200 SMA (purple) turned into resistance and stopped the jump. All the gains were lost, so that looks like a dead cat bounce. The crypto market is slightly bearish today, after being uncertain in previous days, so that’s keeping XRP/USD down as well.
I don’t see any reason for this bounce, apart from rumours regarding Ripple draining a wallet containing 4,000,000,000 Ripple coins, which is used to periodically pay co-founder Jed McCaleb. This is due to a settlement agreement with the co-founder. McCaleb’s “Tacostand” wallet should be drained, since he must sell all the Ripple coins he holds in small amounts, which is a part of the agreement.XRP/USD