The XRP price has been gradually decreasing since August. It has reached a significant support area where it is currently consolidating.
On November 25, almost 50 million XRP were moved to the Bitstamp cryptocurrency exchange from an unknown wallet. This was initially expected to cause a movement in the XRP price, but nothing materialized. On the contrary, the XRP price is very gradually decreasing at the rate of a descending support line.
Well-known TradingView analyst @magicpoopcannon stated that he believes that the XRP price will eventually fall to $0.03. However, he believes this decrease is conditional on the price of Bitcoin falling to $1000.
While I love XRP (and I do believe that it is superior to all other cryptocurrencies) if BTC falls to the 1000 range as I'm currently anticipating, I think XRP could simultaneously fall to 0.03. I hate to report that, but that's what the charts suggest, if BTC falls to 1000.
— MAGIC (@MagicPoopCannon) November 28, 2019
The decrease would amount to an 86 percent drop from the current price. Let’s take a closer look at the price history and see how likely that is.
Significant XRP Price Support
Looking at the logarithmic XRP price, we can see that the price is currently inside a strong support area at $0.22.
Below, there is another support area at $0.14, followed by $0.06, created by the March 2018 highs and finally $0.03.
Therefore, for the target to be reached, the XRP price would have to break down below three significant support areas.
The main bearish indication for the XRP price is the broken ascending support line. The price validated it as resistance twice afterward.
However, on a bullish note, there is a strong long-term bullish divergence in both the RSI and the MACD. Since this divergence is present in a higher time-frame, it often indicates that an upward move will follow.
Furthermore, the daily time-frame shows that the XRP price is following a descending support line.
Additionally, the daily RSI is at 23. The only time it was lower was during August 13, when a rapid upward move followed soon.
Therefore, while it is possible that the price continues to decrease at the rate predicted by the descending support line, a breakdown seems unlikely.
To conclude, we do not believe the XRP price is likely to fall to $0.03. While the possibility is there, especially if Bitcoin goes to $1000, that also seems unlikely.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images courtesy of Shutterstock, TradingView.
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Source: Be In Crypto