Ripple’s honeymoon in the cryptocurrency market may be over.
The XRP-to-dollar exchange rate on Friday established an intraday low towards $0.359 on BitStamp amidst a flash crash action. The pair attempted to bounce back, but the volume was not adequate to erase its latest drop. On the whole, it plunged up to 25-percent in just two days, implying that its previous bullish sentiment is close to fading.
XRP’s market mirrored sentiment as that of other top cryptocurrencies. The last 24 hours witnessed bitcoin, the world’s leading cryptocurrency, depreciating against the US dollar by 8-percent. Meanwhile, Ethereum, Bitcoin Cash, Litecoin, which had posted double-digit percentage gains last week, also corrected between 6- to 1o-percent.
BIG WHALES DUMPING
The price correction in the XRP market followed shady actions noted on BitStamp. Youtuber Michael Gu said a whale single-handedly brought the crypto’s most dominant asset, bitcoin, down to $6,200 as of 0300 UTC today. An hour later, XRP fell to as low as $0.359. A similar price action followed in the other crypto asset markets, signifying that bitcoin’s drop might have triggered altcoin traders to exit their positions.
“This really goes to show how much power whales and big sell orders have on the cryptocurrency markets,” said Gu.
IS THE BULL MARKET OVER?
Not for now!
The XRP-to-dollar exchange rate has broken below the neckline of the previous head and shoulder pattern, as shown in the chart below.
The pair is now testing the target line as support, which has capped XRP’s downtrend on multiple occasions in the past. A break below the target-line could push XRP towards $0.341, the resistance-turned-support from May 11 trading session. At the same time, a pullback from target-line, accompanied by a rise in volume, would open a decent long opportunity towards $0.4201, a level which was the higher high of the left shoulder, and which is now falling suitably on the neckline of the previous head and shoulder pattern.
Nevertheless, a break below $0.341 could turn things bad for the XRP market, as the next downside target would sit as far as $0.308.