Ripple price has fallen 8% in the last 24 hours after reports of an airdrop from the Flare Network for holders of XRP tokens. The Flare Network is a Ripple-backed startup. A campaign to airdrop SPARK tokens (the native token of the Flare Network) will see current Ripple holders receive a portion of these new tokens.
The airdrop opportunity has provided a chance for bulls to take profits from the recent price appreciation. The snapshot of Ripple token holders was completed on Friday, meaning that any new acquisitions of Ripple by traders who did not previously hold the asset, would not qualify for the airdrop. This may have fuelled the selloff.
Also, a stall in Bitcoin prices around the 19,200 price level means that there is no correlation effect by Bitcoin prices to keep the XRPUSD in bullish territory. Ripple price and Bitcoin prices share a positive correlation.
Ripple price action on the XRPUSD daily chart shows that the pair is currently testing support at 0.49884 (lows of 27 November and 9 December), after the triangle broke down. Another violation test has followed yesterday’s violation of this price level; a breakdown has to be confirmed by two closing penetrations below this support. This would open the door towards 0.45121, with 0.40346 and 0.37172 forming the additional downside targets.
On the flip side, a return of price above 0.51869 could usher in new bids that target 0.55618, with 0.59067 and 0.61766 forming additional targets to the north.
