Key Takeaways:
- XRP could lose another 15% in the coming weeks.
- Market conditions don’t favor the token.
- The market cap jumped to trillion on Gemini after a price glitch.
YEREVAN (CoinChapter.com) – XRP token traded at $0.63 on Aug 11 after a 23% monthly decline since the peak on July 11, inspired by the favorable court ruling. However, XRP bulls might face another challenge, as the technicals indicate a 15% additional drop for the coin.
XRP in a bearish divergence
The chart below demonstrated that while the XRP price action printed higher lows, the line connecting lows on the relative strength index (RSI) was flat. Such divergence is indicative of an upcoming drop, as it shows growing disinterest among traders.
The declining trading volumes intensify bearish expectations, along with the negative MACD oscillator. Additionally, the token might coin might copy Bitcoin’s behavior, and the latter is facing several challenges, including the possible delay of an ETF application response and a liquidity crunch in the US market.
Notably, the coin held the previously-instrumental 0.63 support on Aug 11. However, if the coin declines in price, it could seek support at the next available support ($0.54), a 15% decline for the token before September.
XRP market cap jumps to trillions on Gemini, calms in minutes
Meanwhile, the XRP token experienced a noteworthy price anomaly on the Gemini exchange. The token price jumped to $50, maintaining the glitch for several minutes at 20:30 pm UTC on Thursday. As a result, the token’s market cap pumped to trillions of dollars due to low liquidity in the hours following XRP’s relisting on Gemini.
A market observer speculated that the possible cause of the glitch was a seller placing a spoof order at $50 per XRP. A buyer then unintendedly filled the order and “fat-fingered” the trade.
Data from CoinGecko shows the token’s liquidity on Gemini remains relatively low, with only a $37,000 order required to move prices by 2% on the exchange. In contrast, the same price move on Binance would require at least $2.2 million.
