After encountering resistance at $0.64, Ripple’s (XRP) price began to decline.
At the time of writing, XRP is trading at $0.558, down 1.23% in the last 24 hours.
The price of XRP dropped amid Ripple releasing 1 billion tokens from escrow. By implementing a strategy to manage the token supply over the long term, this measure seeks to increase market transparency and predictability. The market’s rapid reaction made investors understandably apprehensive, notwithstanding this objective.
On September 1st, Ripple unlocked one billion XRP tokens via its well-coordinated escrow process. Minutes apart, three separate parts of the transaction were finalized, releasing 500,000,000, 200,000,000, and 300,000,000 XRP tokens, respectively.
After encountering resistance at $0.64, Ripple’s (XRP) price began to decline, and it is now trading at the $0.55 mark, which is in close proximity to the 200-day moving average.
Price Nears Solid Support
Even with this setback, analysts still expect prices to stay in this range and maybe even show some signs of recovery. This region has provided solid support in the past and is expected to draw buyers, which might prevent any further drops.
The XRP price is now encircling a sequence of moving averages, spanning from 50 days to 200 days. Despite the recent declines, XRP is not experiencing a severe sell-off or losing a substantial amount of trading volume, which is a crucial stability indication.
The general consensus is that XRP’s price will stay flat, between $0.55 and $0.64. At the time of writing, XRP is trading at $0.558, down 1.23% in the last 24 hours as per data from CMC. Moreover, the trading volume is down 10.94%.
If the price manages to fall under $0.553, then it will likely decline further to test the key $0.55 key support level. Breaking below this support level, will likely see price testing $0.50 level. However, if the price manages to climb above $0.56 level, then it will likely test $0.58 resistance level.
