The XRP price has not been spared by the ongoing cryptocurrency sell-off. The Ripple price is trading at $0.600, which is about 70% below its year-to-date high of $1.9670. Its market value has also crashed to more than $27 billion and its ranking dropped to 6.
There are four main reasons why the XRP price has crashed recently. First, the price dropped because of the overall weakness in the digital currency industry. This drop has seen all coins, including Bitcoin and Ethereum drop by more than 50% from their year-to-date highs.
Second, Ripple is falling today in reaction to the latest US inflation data. The numbers showed that the headline CPI in the UK rose to 5.4% in June while core CPI rose to 4.2%. This is the highest it has been since 1991, pushing many investors to start pricing-in tightening by the Federal Reserve. Notably, other countries are seeing higher inflation. Earlier today, the Office of National Statistics (ONS) data revealed that the UK CPI rose by 2.5% in June.
Third, the XRP price is struggling as investors continue waiting for progress on the case brought by the SEC. The case is currently in recess following the recent decision by the judge to give the SEC more time to find more evidence.
Finally, the coin is struggling because of low demand from investors. Recent data shows that volume in exchanges like Huobi, Binance, and Coinbase has declined by more than 40% from May this year.
The daily chart shows that the Ripple price is in deep trouble. The coin has formed what looks like a giant head and shoulders pattern. This pattern is usually a bearish sign. Another negative sign is that the XRP has formed a death cross, which is usually a bearish signal also. This cross happens when the 50-day and 20-day moving averages make a crossover.
Therefore, I suspect that the coin will keep falling as bears target the next key support level at $0.45. On the flip side, a move above the resistance at $0.70 will invalidate the bearish view.
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