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Ripple: the price of XRP continues to struggle


en.cryptonomist.ch 20 May 2020 08:30, UTC
Reading time: ~4 m

The first three cryptocurrencies of the ranking today see a reversal of the trend: Bitcoin (BTC) loses 3%, Ethereum (ETH) 2%, while the price of Ripple (XRP) holds better and falls by 1.5%. 

XRP 20200519
XRP chart by Tradingview

XRP tries to consolidate the value above 20 cents but is definitely struggling to recover the 21 cents. Ripple sees a sharp drop in trading and this despite a somewhat good recovery from the March lows which sees it lagging behind the others. 

Ripple is closely tailed by Tether which, with the increase in capitalization in recent weeks, is getting nearer and nearer to gaining third place in the ranking of the most capitalized. 

coin360 20200519
Source: COIN360.com

Overall, the day starts with the brake pulled for the whole sector. The red sign prevails: in contrast to yesterday, more than 70% of the first 100 capitalized are in negative territory. 

Scrolling through the list, the first green sign can be found only by going down to the 38th position, which is occupied by Hyperion (HYN), which rises by 1.6%, with a capitalization of just under 180 million dollars. 

On a weekly basis, since last Tuesday, the first day after the halving, the gains are all above zero. To find the first red sign it is necessary to go down to the 48th position occupied by Augur (REP) which on a weekly basis falls by more than 6%. 

The volumes of the last 24 hours are down 10% compared to yesterday morning. Bitcoin, for the 19th consecutive day, trades over $1 billion in value. 

Total capitalization remains above 260 billion dollars trying to give a signal of recovery of the entire sector. The top reached in the first ten days of May at 270 billion is now a step away. This would put the whole bearish and negative period in place since the beginning of the year, behind us. 

Should the $270 billion recover, the sector would return to the levels of the end of February, before the crisis period of 2020, which ended with the lows of mid-March. 

Bitcoin’s dominance continues to remain hooked at 67%, falling slightly back from yesterday’s peaks when it reached 67.5%. Ethereum recovers slightly and regains the 8.5% threshold while the difficulties of XRP push it further and further down to update the lows of the last three years, below 3.4%. 

Fear&Greed 20200519

The Fear and Greed Index, which goes on a scale from 0 to 100, rises again. After falling back in recent days following its peak at 55, reached exactly 10 days ago on May 8th, the Fear and Greed index then dropped to 40 points in the middle of last week. In the last few hours, it has been trying to return positive by recovering the balance threshold at 50 points. 

BTC 20200519
Bitcoin chart by Tradingview

Bitcoin (BTC) price

This morning, Bitcoin is falling back from yesterday’s highs, when it had risen to almost $10,000, triggering short-term bear action, rejecting prices as high as $9,500, where they oscillated this morning. 

The descent is not going to affect the upward trend, which at the moment does not highlight dangers either in the short or medium term. The first warning signs in the short term would only come with falls below last Friday’s lows in the $9,150 area. 

In the medium term the first warning bell would only sound with sinkings below $8,500 coinciding with the dynamic support of the lower neckline of the bullish channel.

ETH 20200519
Ethereum chart by Tradingview

Ethereum (ETH) price

The $215 recovery is currently seeing a prevalence of profit-taking that does not allow ETH prices to consolidate above this level. The $210 holding provides hope for the possibility of a more vigorous attack. 

A break of $215 would prompt testing the next level of resistance in the $225 area, which coincides with the relative highs at the end of April.

For Ethereum, after yesterday’s recovery, it is important to keep prices within the bullish channel that was dangerously breached during last week’s descent. 

That is why it must consolidate prices and not go below the psychological threshold of $200 and the even more dangerous technical threshold of $185, which coincides with the fall that occurred exactly on Monday, May 11th when prices sank to $175.

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