Ripple prices recently hit a $0.47 price level, which is the lowest prices have come for more than a year. However, in the past few days, the cryptocurrency has attempted to regain its value, with yesterday’s trading session recording a two per cent gain in the market.
In today’s trading session, the prices have resumed the downward trend, losing over two per cent of their market value. The session has also seen the markets reverse gains made yesterday.
The latest Ripple crash comes amidst a $400 billion cryptocurrency wipeout that has resulted in massive drops of a majority of cryptos in the market today. Today’s price drop also comes after the recent UST controversy, which has resulted in it crashing and causing panic in the market. According to reports, UST, which is a stablecoin which is pegged to dollar Fiat currency in a one to one ratio, fell below 50 cents causing a spike in crypto assets held using the coin.
The UST fiasco also started a new debate on whether the industry should be regulated. According to reports, the stablecoin started crashing after the Federal Reserve announced a hike in interest rates. This resulted in the stablecoin struggling to maintain its dollar 1:1 peg, resulting in a drop. Treasury Secretary Janet Yellen used UST as an example to discuss the risks in the cryptocurrency market and why the industry needed regulations.
Today’s trading session is a continuation of a long-term bearish trend that has resulted in ripple price dropping by 15 per cent this month. Looking at the chart below, we can see both the Williams Alligator and the RSI indicators showing strong signals of a bearish move. The cryptocurrency has also traded within a descending channel for weeks. Therefore, I expect the prices to continue falling. There is a high likelihood that the current price of $0.48 may drop to trade below $0.40 in the next few trading sessions.
However, if the price rises above $0.6, then my bearish trade analysis will be invalidated. It will also mean a likelihood of a bullish trend.
This post was last modified on %s = human-readable time difference 14:59