Ripple (XRP) Price Faltering at a Key Support Level
Ripple’s XRP token has had a tough week. After starting off strong on Monday and looking like it would hold support above $0.40, XRP fought through a few days of uncertainty, slipping down to $0.39 on several occasions. Despite managing to claw back up above $0.40 yesterday, a fresh wave of sellers has proven too much for the coin. An industry-wide sell-off that began early this morning has caused XRP to plunge below $0.37, a 7.89 percent decrease that looks likely to continue further into the day.
XRP is not alone in the drop, with the majority of cryptocurrencies following suit. Ethereum (ETH), Bitcoin Cash (BCH) and EOS are all matching XRP with 7 to 8 percent drops in price while Stellar (XLM) suffers the worst losses at almost 10 percent. Bitcoin (BTC) is faring slightly better with only a 3.6 percent loss.
Sentiment is strong as usual in the XRP community with many commenters expressing positive feelings and taking advantage of the low prices to accumulate more coins. Following the price surge last week, XRP has gained the attention of several new investors, with over 2680 new XRP accounts created in the past day.
Adoption of XRP in business applications continues to grow, with content-creator platform Coil integrating XRP into its payment system. Coil aims to provide a platform for writers and bloggers to earn additional income through posting work on the site. The platform is built on the Interledger Protocol hopes to use cryptocurrency payments to subvert the need for advertisements on the website.
Popular Twitter trader CryptoFibonacci (CryptoFib) noted earlier today that XRP must hold the significant $0.361 level which represented previous resistance. A drop below this could result in a faster and more drastic decline towards the previous $0.30 level that XRP held most of this year. With XRP now at $0.365, this level is quickly approaching.
The simple moving average (SMA) 100 on the 4-hour chart and the 61.8% Fibonacci retracement may offer some additional support between $0.355 and $0.358 but below this, the next strong support is the 50-day moving average (DMA50) at $0.336.