The Ripple price is one of the worst performers this weekend. The XRP is trading at $1.2890, which is 34% below its all-time high. At some point, the currency was down by more than 42%. Its market value has dropped to more than $58 billion and is still the fourth-biggest digital currency in the world.
What happened: Ripple price has defied gravity in the past few weeks. This month alone, the currency had risen by more than 263% before the current crash. This year, it was up by more than 725%. This happened even as Ripple Labs faces its toughest test yet because of the Securities and Exchange Commission (SEC) lawsuit. Also, the firm has lost some deals, especially the large one with MoneyGram.
The recent rally has been because of the defiance by traders about the platform’s risks. Also, the overall rally in cryptocurrencies has led to a surge in XRP and other currencies. Therefore, the current decline is mostly because of profit-taking by day traders and the overall selling the rumours situation. So, what next now that Ripple has discovered that gravity exists.
XRP price analysis
Turning to the daily chart, we see that the Ripple price is in its fourth day of straight losses. The losing streak is also gaining momentum such that it is attempting to move below the 25-day moving average. Also, the price is between the upper and first resistance level of the Andrews Pitchfork tool.
Therefore, in my view, this dip is an ideal buying opportunity since there are still buyers in the market. This will be validated if the price manages to stay above the important resistance at $0.7878, where it had struggled to move above before. This price is about 40% below the current level.
Any decline below that resistance level will send a signal that there are more sellers in the market, who will want to push it to $0.50.