The Ripple price has struggled in the past few days. After staging a major rally last week, the XRP has dropped to $1.1195, which is about 20% below the highest level this week. It has a market capitalization of more than $53 billion and is the 6th biggest cryptocurrency in the world.
XRP recovery fades
Ripple is a leading blockchain project that is in the money transfer industry. Through the On-Demand Liquidity (ODL) product, Ripple hopes to reduce the overall cost of sending money and improve the speed of transactions. The developers have partnered with key companies like Santander to achieve this. It has also partnered with SBI International and taken a stake in Trangle.
Like all cryptocurrencies, XRP declined sharply in May. At the time, it declined from the year-to-date high of $1.9497 to $0.5150. Recently, however, the coin has rallied by more than 113%. Early this week, the recovery pushed it to a multi-month high of $1.3686.
This momentum has recently faded. A closer look shows that Ripple is not the only cryptocurrency struggling. Indeed, Bitcoin has moved from above $50,000 to about $48,000 while Cardano has declined by more than 10% from its highest level this week. This decline is partly because of profit-taking as investors wait for some statements during the Jackson Hole Summit. Also, Ripple is wavering as the SEC fact-finding period draws near.
Ripple price prediction
The daily chart shows that the XRP price has struggled in the past two days. The coin is trading at $1.1195, which is an important support level since it was the highest point on July 1st. The coin has also formed a relatively small double-top pattern. Still, it is being supported by the 25-day and 50-day exponential moving averages (EMA).
Therefore, while this pullback could continue further, there is a likelihood that the coin will rebound in the next few days. If this happens, the next key resistance level to watch will be $1.600, which is about 45% above the current level. This view will be invalidated if the price falls below the key support at $1.00.