Crypto News

XRP Tanks Following Hyped Airdrop That Catalyzed Parabolic Rally

XRP has given up a serious percentage of its recent gains, with the cryptocurrency’s parabolic rally fading and showing few signs of strength as sellers rise with full force.

The cryptocurrency’s parabolic rally came about shortly after it plunged to lows of $0.23 before rallying to the top of its multi-year trading range around $0.30. The break above this level came about swiftly and allowed it to see some immense momentum.

Adding fuel to this sharp price rise was mounting hype surrounding the airdrop distributed to XRP investors yesterday, which was widely thought to have the potential to provide holders with some valuable tokens – similar to the airdrop seen by Uniswap.

This created a buying frenzy that boosted XRP’s technical strength and ultimately led it to highs of $0.90 on Coinbase, at which point it lost its momentum and began reeling lower.

It has been unable to gain any strong momentum in the time since and is still flashing some signs of weakness as bulls struggle to maintain its recent momentum.

One analyst is pointing to this latest rally and noting that it is structurally similar to those seen in years past that have always resulted in full retraces.

XRP Plummets Following SPARK Airdrop

At the time of writing, XRP is trading down nearly 6% at its current price of $0.50, which appears to be a support level for the token.

It does appear that the airdrop was a “sell the news” event, as it started reeling lower right around the time of which the SPARK snapshot was taken of XRP balances on platforms that are supporting it.

Because the crypto is now showing signs of technical weakness, it could be a matter of time before it drifts back towards its multi-year trading range.

Trader Claims Latest Pump is Structurally Similar to Previous Ones

While sharing his thoughts on where XRP might trend in the mid-term, one trader noted that the cryptocurrency’s latest rally is shaping up to be just like all the others.

This means that it may see a swift decline in the days and weeks ahead as traders take profits on this movement.

“Whole lot of noise about XRP the past few days for a chart that’s slowly filling it’s inefficiency like it’s done every time in the past.”

XRP

Image Courtesy of Chase_NL. Source: XRPUSD on TradingView.

Regardless of where Bitcoin and Ethereum trend in the mid-term, there’s a strong possibility that XRP will see serious losses as long-term investors use this rally as an exit opportunity.

Featured image from Unsplash.
Charts from TradingView.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of CoinChapter and CoinChapter does not assume any responsibility or liability for the same.

(This story has not been edited by CoinChapter staff and is auto-generated from a syndicated feed.)
0 Comments
Inline Feedbacks
View all comments
CoinChapter

Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.

Related Crypto News

Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...
Aker Launches Seetee To Invest in Bitcoin, Blockchain Projects
Aker announced it has launched a new company called Seetee that is dedicated to investing in Bitcoin and blockchain...
Ethereum Analysis: Rising Wedge Casts Doubts Over Bullish Bias Viability
Ethereum surged ahead of the New York opening bell, locking steps with its top rival Bitcoin after staying in...
Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...
John McAfee Indicted On Fraud & Money Laundering Charges For ‘Pump And Dump’ Scheme
John McAfee and his executive adviser Jimmy Gale Watson Jr. have been charged with securities fraud. Federal prosecutors believe...

Featured Crypto News

Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...
Aker Launches Seetee To Invest in Bitcoin, Blockchain Projects
Aker announced it has launched a new company called Seetee that is dedicated to investing in Bitcoin and blockchain...
Ethereum Analysis: Rising Wedge Casts Doubts Over Bullish Bias Viability
Ethereum surged ahead of the New York opening bell, locking steps with its top rival Bitcoin after staying in...
Yearn Finance Breaks Off Merger With Cover
Decentralized Finance protocols Yearn Finance and Cover Protocol announced the end of their protocol merger. “We have decided to...
John McAfee Indicted On Fraud & Money Laundering Charges For ‘Pump And Dump’ Scheme
John McAfee and his executive adviser Jimmy Gale Watson Jr. have been charged with securities fraud. Federal prosecutors believe...