Ripple price weekly analysis 20 June: Exchange hack targets XRP
Ripple is showing signs of a slow recovery for now but the Bithumb exchange hack has had a big impact.
Key takeaways
- XRP's price fall has been arrested for now.
- Hack at Bithumb accounts for a tenth of XRP trades over the last day.
- Ripple sits in "bearish band" in a tug of war between bears and bulls.
Ripple has had a better week. While the recent price falls haven't been recovered, the declines of the last couple of weeks have been arrested and the price has increased slightly on where it finished trading last week.
Ripple was trading at about US$0.52 a week ago and rose to around $0.57 before dipping back to $0.51 and then rising and falling again. It's sitting at just under $0.54 now.
Trading volumes have fluctuated. When the price was slowly dipping last week, 24-hour trading volumes were around $183 million but rose to over $300 million when the price picked up, as buyers entered the market trying to pick up some XRP at its nadir.
That price band we're seeing, that sits between $0.50 and $0.56 is described as a "bearish channel" by FXStreet. It is suggesting the $31 million hack at South Korean exchange Bithumb is a factor.
The target of that hack was XRP with the hack accounting for a tenth of the global trading volume of XRP over the last 24 hours. Bithumb was aware of some security issues but steps they took to bolster security failed and the exchange was compromised.
Whether that's contributing to the bullish trend CryptoGlobe is seeing is hard to tell as their analysis doesn't reference it.
The hacking of Bithumb is a strong reminder that we are still operating in a relatively immature market where operators have moved ahead quickly and some of the safeguards we take for granted in other markets aren't yet in place, or at least built to the standards institutional investors expect.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.
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