The Ripple price has not been left behind in the ongoing cryptocurrency sell-off. The XRP is trading at $0.8100, which is 24% above the weekend low of $0.6535. It has a market capitalization of more than $36 billion, which is substantially lower than the all-time high of almost $70 billion.
What happened: The close correlation among cryptocurrencies became more evident last week as their prices crashed. The process started when the BTC prices dropped after Elon Musk said that Tesla would stop accepting the digital currency. It then accelerated after the strong consumer inflation data showed that the US CPI rose by more than 4.2% in April.
Further, news that the Chinese government was starting to crackdown on the currencies pushed their prices lower. As Bitcoin prices fell, other cryptocurrencies also declined. This is more evidence than digital currencies are all correlated.
The XRP is also reacting to the ongoing litigation between the SEC and Ripple Labs. A hearing between the two parties took place on Friday this week. The key contention was that the SEC wanted Ripple Labs to turn over documents relating to its XRP listing. This week, the XRP price will react to the latest case updates and the overall performance of cryptocurrencies.
“Will the Ripple price bounce back?” This is the question that many people are asking themselves. A look at the daily chart is not painting a good picture about Ripple. We see that the currency has crossed the 61.8% Fibonacci retracement level. This is a sign that bears are dominating. Most importantly, the coin’s price has already moved below the 50-day, 100-day, and 200-day exponential moving averages (EMA). It has also moved below the neckline of the double-top pattern at $0.9128.
Therefore, the currency will likely keep falling as bears target the 78.6% Fibonacci retracement level at $0.5100, which is 35% below the current level. However, after the strong sell-off, we can’t rule out another major comeback.
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