December 12th is the big day for XRP, and it’s TODAY. Why? Because that is the day that the Flare network for the Spark token transfer is happening for everyone who has XRP in their account from a supported broker. The problem is that leading into this date, there was a huge amount of demand for XRP due to the fact that everyone’s going to get a one-to-one transfer. Now, what’s gonna happen once the transfer is done? Is there gonna be a massive amount of supply from people exiting their positions? That’s what we need to talk about today so let’s get into it.
XRP Technical Analysis
In the past couple of weeks, and in anticipation of the big day before the Airdrop, everyone flocked and bought XRP, sending its price to shoot 230%. As a first stage, most people who opened positions earlier this year around USD 25 cents, took some profits ad exited their positions, letting the price of XRP adjust, and ever since, people have been in anticipation of the Airdrop day, consequently holding the price above USD 50 cents.
In figure 1, we can clearly see a triangle formation, signaling a very crucial moment. The current price of XRP is around USD 52 cents, which coincidentally is a strong support area (blue line). At the same time, the current price of XRP is touching the lower side of the triangle. On this day, this signals a very worrisome for XRP, as people will most likely sell XRP after the Airdrop takes place, creating a big sudden supply of XRP, thus crashing in prices.
If the price of XRP manages to break the lower triangle side, we can expect the price to fall all the way to the next support area of USD 42 cents (figure 2), provided that we have a kind of support from BTC and other cryptos. If the whole market started crashing again, even the USD 42 cents area might witness a breakout to reach lower areas.
Will XRP price shoot back to the moon?
It is hard to predict the coming move of XRP before we see a defined price-action later today, and specifically during midnight, where most volatility occurs. But in any case, XRP price usually lags behind the cryptocurrency market, and we’ll be able to know the general price direction if Bitcoin actually reaches its USD 20,000 price target.
In the event that the 20k race actually happens, we can then presume another rally for XRP, but this will most certainly come after the current price corrects further due to the XRP selloff that might happen post-Airdrop event today.
Risk Management Levels to consider
A good trader or investor knows how to manage his risks, minimize his losses, and when to exit his positions. Currently, it is advisable to watch out for the below levels:
- USD 50 cents break – Signaling a further drop in prices
- USD 42 cents – The next support level where the price might reach in case of a heavy selloff
- USD 60 cents – Representing the top of the triangle, where a breakout might signal another Rally
Stay Ahead, Stay Updated
You might also like
More from Ripple
Cryptocurrencies are now one of the most talked-about investments across the financial market. There is so much to learn and …