Ripple Technical Analysis: Is XRP Dropping Towards The $0.50 Psychological Level
Daily Ripple XRP Price Analysis
- The Ripple price has flashed multiple sell signals in the 4-hour chart.
- XRP volatility is increasing in the 1-day chart.
- The MACD shows increasing bearish market momentum.
- The parabolic SAR has flipped from positive to negative.
The Ripple price has dropped below the $0.60 psychological over the last two sessions. Prior to that, XRP has been on a sharp decline since May 19, wherein it dropped from $1.46 to its current levels. During this drop, XRP flipped the 20-day, 50-day, and 200-day SMAs from support to resistance.
Ripple Price Sits On Lower Bollinger Band
Between July 9 and July 14, the Ripple price was trending horizontally around $0.62. Following this, XRP fell to $0.59 under bearish pressure. The relative strength index is hovering around 37.25, meaning XRP could drop a bit more before getting oversold. The Bollinger Band has started expanding to show increasing volatility.
Image: XRP/USD daily
In the 4-hour time frame, the Ripple Price has had five straight bearish sessions after meeting resistance at the 20-bar SMA. Along with this, XRP has flashed the following sell signals:
Image: XRP/USD 4-hour
Ripple Founder Sells >100M XRP Since The Start Of July
Former Ripple executive Jed McCaleb continues to dump his XRP holdings. Currently, there are more than half a billion XRP tokens left in his “tacostand” crypto wallet.
Blockchain payments company Ripple sent its former CTO and co-founder McCaleb another payment of over 291 million Ripple tokens earlier this month. According to the blockchain explorer XRPScan, this was the latest in a series of massive Ripple transactions sent to McCaleb.
As a part of a settlement agreement, Ripple has been sending McCaleb hundreds of millions of Ripple every month and the former CTO. In less than two weeks, he sold over $62 million worth of XRP at current prices.
Meanwhile, the crypto community has predicted that he might sell the rest of his holdings in the following months.
After McCaleb left Ripple in 2014 over internal disagreements, he initially tried to dump all of his token holdings at once. However, Ripple managed to stop him from doing that by filing a series of lawsuits.
Since the crypto community cracked McCaleb’s pattern of selling his Ripple holdings, speculations about his reasons behind it keep occupying the debate on Twitter. A user "@CryptonianSeb" said:
"...when the ex-CTO dumps what is essentially your stock, it does NOT scream confidence for your business model."
To this, another user "Odds75" said:
"He literally runs a competing protocol. It’s not a sign of a lack of faith. He wanted to sell it all when he left Ripple, but they managed to get an injunction to stop that, and instigated this incremental system."
Ripple Price Is Expected To Reach These Levels
The Ripple price is presently sitting on top of crucial support at the lower Bollinger Band. A break below this level could take XRP to the $0.50 psychological level.