XRP price is back to trading below $0.5 roughly a week after increasing to $0.55. The cross-border money remittance token has in the last 24 hours lost 2.5% of its value to trade at $0.486 on Tuesday.
The bearish wave is not unique to XRP price, with Bitcoin decreasing by 2.2% and barely holding above $27,000. Ethereum extended the down leg below $1,600 and currently exchanges hands at $1,556, down 2.2% in 24 hours.
XRP Community Pokes into Ripple’s Management Of The Escrow Account
Ripple’s leadership has for a long time maintained that it does not interfere with the performance of XRP price in the market. However, the decision by the company not to sell a significant portion of its monthly allotment of XRP in the escrow account has started to raise questions.
One critic called Alter Diego voiced his concerns on X (formerly Twitter) mainly on the sale of escrowed XRP. He argued that Ripple is selling the least amount of the tokens despite receiving regulatory approval which could mean the company is indirectly bolstering XRP price.
“The fact that Ripple doesn’t manage to sell even half of its monthly $XRP escrow release even after “having gained clarity” should tell you everything you need to know about this coin,” Diego wrote on X.
The fact Ripple decides not to sell most of the XRP released each month from escrow tells me what I already know from the SEC’s evidence in the Ripple case. Ripple takes steps to support XRP’s price. https://t.co/QOTUZXnBhY
— bill morgan (@Belisarius2020) October 9, 2023
Meanwhile, Julian Williams, another XRP enthusiast said that it does not matter which action Ripple chooses to take because people would still blame it for “dumping” XRP if the entire monthly allotment is sold.
XRP Price Prediction As $0.5 Flips Into Resistance
XRP price is on the verge of a larger breakdown following the validation of a symmetrical triangle pattern on the daily chart. At the same time, the cross-border money remittance token holds below all three major moving averages, starting with the 21-day EMA, the 100-day EMA, and the 200-day EMA.
The Relative Strength Index (RSI) is back below the midline and dropping toward the oversold after abandoning the climb to the overbought region at 60. If bulls do not put their best feet forward and guard the immediate support at $0.48, the possibility of an immediate recovery would highly depreciate.
Holders may decide to capitulate in favor of other altcoins if a recovery fails to occur at $0.48. The presence of the triangle pattern could push XRP price 34% below the breakout point at $0.51 to $0.33.
Upholding support at $0.48 would go a long way to avert the sell-off thus giving bulls a chance to regroup and push for another recovery attempt above $0.5.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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