The price of XRP (XRP) has fallen 4% in the past 24 hours as the rally in the popular cryptocurrency loses momentum.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Notably, XRP’s price has dropped below the key support level of $2.30 amid heavy selling. The cryptocurrency’s price fell as low as $2.28 over the weekend. Cryptocurrencies trade around the clock, 24 hours per day, seven days a week.
Analysts and chart experts say XRP’s price has now formed a double bottom, creating a resistance zone that was tested multiple times before retracing to $2.30. Some technical analysts point to critical support at the $2.25 level, with market watchers warning that a breakdown below that level could trigger a fall all the way to $1.90.
Price Breakdown?
The selloff in XRP comes despite the broader crypto market rallying in recent days, with the price of Bitcoin (BTC) hitting a record high above $111,000. Investor sentiment towards cryptocurrencies has improved as global trade tensions ease.
The price of Ethereum (ETH), the second largest cryptocurrency after Bitcoin, continues to rally and is now up 43% from its lows seen in April of this year. It’s not clear why XRP’s price is slumping and moving in the opposite direction of the broader cryptocurrency market.
Some analysts are speculating that XRP is experiencing a selloff as investors and traders take profits after a big rally over the past year. In the last 12 months, XRP’s price has increased 334%, outpacing nearly all other cryptocurrencies.
Is XRP a Buy?
Most analysts don’t offer ratings or price targets on XRP. So instead, we’ll look at the cryptocurrency’s three-month performance. As one can see in the chart below, the price of XRP has risen 8% in the last 12 weeks.
