The Ripple pricehas struggled, a few days after it soared to its year-to-date high of $1.9680. XRP has dropped for the past six consecutive days and is now trading at $1.2640. Its market cap has also dropped to more than $58 billion.
What happened: XRP has had an exciting start of the year even as Ripple Labs and two of its execs battles a major lawsuit brought by the SEC. The currency has soared by more than 140% in April and by more than 630% from its lowest level in December.
The recent rally was because of the overall strong performance of the overall crypto universe. All of the top currencies tracked by CoinMarketCap have rallied in the past few months. Also, XRP has rallied as investors rush to buy the dips after the currency dropped sharply in December.
A recent win by Ripple Lab’s execs against the SEC has also incentivised more people to invest in the currency. Further, the recent direct listing of Coinbase was also bullish for Ripple.
The recent decline, therefore, is partly because of profit-taking after the strong performance by the currency. Also, the overall sell-off by other cryptocurrencies has also contributed.
XRP price analysis
The daily chart shows that the Ripple price has been on a strong downward trend lately. It has fallen in the past six straight days. The price has also moved below the 38.2% Fibonacci retracement level. Further, the price is being supported by the 25-day and 15-day moving averages.
Therefore, I suspect that the price will continue rising as bulls attempt to move above the YTD high. However, a drop below the 50% retracement level at $1.0725 will mean that there are still more sellers in the market. This will open the possibility of the currency falling to $0.8611, which is about 30% below the current level.