XRP’s price has fallen below $0.50, confirming a breakout from a triangle pattern that might lead to a drop to $0.33 if the support at $0.48 weakens.
XRP’s price is now below $0.50, just a week after reaching $0.55. In the past 24 hours, XRP has lost 2.5% of its value and is now trading at $0.486 on Tuesday.
The downward trend isn’t limited to XRP; Bitcoin has dropped by 2.2% and is barely above $27,000. Ethereum has also fallen below $1,600 and is currently trading at $1,556, down 2.2% in the past 24 hours.
XRP Community Questions Ripple’s Escrow Account Management
Ripple has always said it doesn’t influence XRP’s price. But now, people are starting to wonder because the company isn’t selling a big part of its monthly XRP allotment from the escrow account.
One critic, Alter Diego, raised this concern on social media, saying that Ripple is selling fewer tokens even though it got regulatory approval. This could indirectly be helping boost XRP’s price.
Diego wrote on social media, “The fact that Ripple doesn’t sell even half of its monthly XRP release, even after getting regulatory clarity, says a lot about this coin.”
The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price. https://t.co/QOTUZXnBhY
— bill morgan (@Belisarius2020) October 9, 2023
Julian Williams, another XRP supporter, pointed out that no matter what Ripple does, people will criticize it for “dumping” XRP if they sell the whole monthly allotment.
XRP Price Outlook: $0.5 Now a Resistance Level
XRP’s price is teetering on the edge of a potential significant decline after confirming a symmetrical triangle pattern on the daily chart. Additionally, the cross-border remittance token is trading below all three major moving averages: the 21-day EMA, the 100-day EMA, and the 200-day EMA.
The Relative Strength Index (RSI) has fallen below the midpoint and is heading toward the oversold region after previously moving towards the overbought zone around 60. If the bulls don’t act promptly to defend the immediate support at $0.48, the chances of an immediate recovery diminish significantly.
XRP/USD daily chart | Tradingview
If XRP doesn’t see a recovery at $0.48, some holders might choose to switch to other altcoins. The presence of the triangle pattern suggests XRP’s price could drop by 34% from the breakout point at $0.51 to $0.33.
Maintaining support at $0.48 is crucial to prevent a sell-off, offering bulls an opportunity to regroup and make another push for a recovery above $0.50.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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