Ripple price weekly analysis 27 June: A steady decline over the last week
Ripple has dipped but is following a different path to the other major coins.
- A steady decline has seen Ripple's value dip by 13% over the last week.
- Trading volumes have been increasing when the price dips.
- Further falls of just a few cents could lead to a more substantial fall.
Ripple has lost about 13% from its value over the last week although its drop has been more gradual than the shift we've seen with some other coins such as Bitcoin and Ethereum over a similar period. Having started the last seven day period at just under US$0.53, XRP moved up to $0.54 before falling to as low as $0.45.
At that point, on Monday, 24-hour trading volumes picked up from $195 million to about $370 million as the price worked its way back to $0.45 before dipping and slowly coming back up to $0.46 which is where it sits at the moment.
The general consensus across the market is that XRP is struggling to maintain any gains above $0.47. That's a view backed by NewsBTC and CryptoGlobe. Cryptoglobe says that if the $0.44 price is broken that the next level we'll see support could be as low as $0.24. This is a long way below the lowest values we've seen this year; roughly where Ripple was last December and a fraction of the $3.79 value we saw in early January.
Smartereum's view is more optimistic with their analysis suggesting an upward move is developing. I think that's a premature prediction given the upturn they're looking at is only a few hours old and could be little more than a small dead-cat bounce.
While Ripple's price has been hit, along with almost every other cryptocurrency over the last month, it's interesting to note its fall has been more gradual and doesn't feature the big red candles we see with some other coins. That suggests some folks are backing away but not with the same degree of panic and fast selling as other coins.
Ripple's platform is part of a long-term play and it seems some traders are playing a longer game. Increased trading volumes when the price dips suggest there's still confidence in the platform, which is focused on solving some of the challenges of currency exchange in the finance sector. The fact it's finding a way to integrate with existing financial markets might give the market confidence that it will once again increase in value.
But we're also seeing a significant market correction take place so there may yet be some more pain before there's any gain.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.