Warning: The conclusions of the following analysis are the sole opinions of the author and should not be construed as investment advice.
XRP, a cryptocurrency that once fought for # 2 on CoinMarketCap’s charts with Ethereum, has now slipped to # 4 in the rankings, a slide that may well continue in the near term. While no one expected the SEC’s lawsuit against Ripple and XRP, we all knew it was inevitable as well.
At the time of writing, XRP had fallen 16.3% in the last week alone, following a 72% drop in the past 35 days. While this decline continues, let’s take a look at the price of XRP and find out what we can expect.
1 week XRP chart
Source: XRPUSD on TradingView
The attached chart highlights the price performance of XRP from a different perspective.
With the exception of XRP’s recent surge to $ 0.79, the cryptocurrency traded sideways for most of 2020, starting in mid-2019. Focusing on 2020, let’s take a look at how XRP is performing.
- Considering the surge of $ 0.79, XRP yields stood at 181% on November 23, however, at press time, XRP’s YTD yields stood at 0.46%.
- Another interesting observation is that over the 365 days of the year, XRP has less than $ 0.30 for 313 days
- Likewise, XRP traded below $ 0.40 for 333 days
With these observations, we can easily conclude that XRP was dead long before the SEC initiated the lawsuit. As a speculative asset for trading, XRP hasn’t offered much as its price has always remained anchored, but with the SEC lawsuit, speculative trading in XRP has disappeared, at least in the United States. .
At the time of writing this article, with the exception of Kraken, all major cryptocurrency exchanges have said goodbye to XRP, which is part of the reason for the decline in XRP prices. If Kraken does the same, we can expect the price to drop even more.
Conclusion
Source: XRPUSD on TradingView
The attached chart highlights an important trendline at $ 0.1140. This level was reached in 2020 and if XRP visits this level again, we can assume that it has reached a point of no return. Right now, it’s safe to say that almost every XRP hodler has abandoned ship or is in the process of doing so.
Finally, any observation of the cryptocurrency indicators is pointless since the only direction XRP is going to head is down.
