Amidst the uncertainty, the cryptocurrency market saw a 2.35% correction over the past day, with its total value falling to $2.05 trillion from $2.11 trillion the day before. As a result, the Bitcoin price broke the $60,000 support level and bottomed at $58,144.
Meanwhile, the price of Ripple (XRP) recorded a strong reversal after news of Grayscale’s XRP trust fund sparked hopes of a strong rally. This has made investors worried about the short-term outlook of XRP price.
Ripple Price Records Strong Rejection
After facing rejection at the resistance level, XRP price has decreased by about 3% in the past day with a trading volume of $1.035 billion. With a trading price of $0.5706, the altcoin recorded a 24-hour high/low of $0.5895 and $0.5607 respectively.
Despite posting a gain of 7.16% over the past week and 1.76% over the past month, the 7th ranked cryptocurrency still has a year-to-date return of -7.30%. This shows a long-term bearish sentiment towards the Ripple Token in the market.
The Relative Strength Index (RSI) has undergone a sharp decline towards the midpoint on the one-day time frame. This shows that selling pressure is increasing in the crypto space.
On the other hand, the SMA indicator continues to favor the XRP price chart, highlighting a mixed price sentiment for this altcoin in the crypto market.
Is XRP Price On The Verge Of A Crash?
If the market regains momentum, Ripple price will retest the triangle pattern resistance level. Sustaining the price above this level could lay the foundation for the altcoin to move towards the higher resistance level at $0.630.
However, if the bears continue to gain strength, the price will test the low at $0.560. If the bearish sentiment becomes stronger, this could result in a drop to the lower support at $0.480 in the coming weeks.
For long term price forecast, read our XRP price forecast.