LIVE NOW

XRP price weekly analysis 11 July: Losses for the week are compounded by low trading volumes

Anthony Caruana 12 July 2018 NEWS

After holding tight for most of the week, XRP took a big hit and is now trading at below $0.45.

Key takeaways

  • XRP takes a hit as lower support levels are challenged.
  • Market volumes remain low, suggesting bears are in control of the market.
  • Ripple is making moves to ensure its troubles aren't reflected on XRP.

XRP spent most of the last seven days trading in a narrow band between $0.46 and $0.48. But that ended on Tuesday when the price took a hit and fell below $0.45. It's currently trading between $0.44 and $0.45 as that support level seems to be holding at the moment.

The key resistance level is around the $0.48 mark. The price broke through that position early in the week before market bears exerted their influence, dealing a major smackdown that saw the price fall back to $0.48 before taking another hit.

Trading volumes over 24 hours were higher early in the week, sitting around $310 million before falling back between $200 million and $240 million. That reflects something we're seeing across the board with traders holding back. Most analysts agree these low levels suggest any price breakouts, like the one XRP showed a few days ago, are likely to be short-lived.

That's certainly what Coin Telegraph's analysts believe, saying the third most valuable cryptocurrency by market capitalisation is locked in a "bear grip". It says that if the $0.42 level is broken, we can expect a massive fall all the way into the mid-$0.20 zone.

Interestingly, Global Coin Report says that position, around the $0.25 mark, would achieve a longer term goal that was set last year before the market took off and we saw massive price spikes in January. It says "the token set the long-term objective at the second half of last year to hit the 25-cent mark, which at the moment remains active, a fact that will represent -48% from the actual price or -92% from its highest price of January".

Over the last week Ripple, the company, has been working to let us all know that XRP and Ripple aren't the same. Global Coin Report says that Ripple is facing three lawsuits and scrutiny by the Securities and Exchange Commission in the United States, so this move is positive as it will help XRP avoid being tarred by the same brush as Ripple.

Disclosure: At the time of writing, the author holds BTC, EOS, ETH, XLM, ETN, LTC, ADA and XRP.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

    Crypto explained


Latest cryptocurrency news

Picture: Shutterstock

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site