The price of XRP, the cryptocurrency of blockchain company Ripple, has dropped to near $0.50 after increasing to above $0.55 on Tuesday. The gains had been largely driven by the hype surrounding the release of key documents from a 2018 speech by then SEC official William Hinman.
Analysts believe XRP’s spike was a “sell the news event” and the coin has flipped -8.4% earlier to give up the upside ground. The dip comes as the broader crypto market mirrors action on Wall Street amid investor anxiety of what comes next after today’s Fed rate decision. The decline threatens to push XRP beneath the critical support area.
On Tuesday, crypto investor and analyst Scott Melker pointed out that XRP had “one of the clearest charts” as the price had broken downtrend, before retesting the area as well as the 50 MA as support. He noted that bulls faced a clear resistance at $0.5597, which is where XRP retreated from and likely marked the “sell the news” point following the release of the Hinman files.
Crypto YouTuber and trader Crypto Rover also claims a breakout is imminent and if positive sentiment permeates the markets, likely from a new development that favours Ripple in its battle against the SEC, XRP could break out and target the psychological $1. On the other hand, a reversal/breakdown could result in fresh bearish pressure.
