Yesterday, Ripple price slumped after a massive flash crash in Bitcoin saw the number 1 crypto lose 7.5% of its value in just 45 minutes. The correlation between BTCUSD and XRPUSD played out once more, with Ripple price taking a hit as traders sold the asset aggressively to push the XRPUSD pair down to 0.27173.
Several events preceded this slump. First, the hedge fund known as the Fortress Investment Group has offered to buy up creditor claims for Mt.Gox at the cost of $1,3000 per BTC. The second event was the auction of about $40 million worth of BTC that had been seized by the US authorities in some criminal investigations. The sale was to be done by the US Marshalls Service and would see the highest bidder from pre-qualified sealed bids take away the Bitcoin stash.
Perhaps, even more telling for Ripple Price is the supposed discovery of the movement of $65million worth of Ripple in three transactions between anonymous wallets, according to a report by XRPL Monitor. There is yet little information about this event and whether it spooked traders into selling and pushing down Ripple price.
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Ripple price action on XRPUSD shows that the pair eventually broke down the support at 0.28408, cutting through the bullish flag’s upper border and sending Ripple price back into the consolidation area. Ripple price has found support at the next support target of 0.26754. The daily price action has been quite choppy, but this support has held.
If the support at 0.26754 continues to hold, this may allow Ripple price to make another attempt at pushing upwards, which would target the 0.28408 resistance. This resistance also coincides with the upper boundary of the flag’s consolidation area. This area must be broken by a time or price filter for Ripple price to target the 0.30925 resistance target.
On the flip side, a breakdown of the 0.26754 support area would allow XRPUSD to push downwards in an attempt to find new support at 0.25038. Further support lies below at 0.23428.