It has been a difficult first half of 2021 for Ripple's price. The coin slid down from third position, surrendering that lead to Binance Coin, and is now in seventh, deep red to date.
The Bitcoin effect
It is true that the situation is complicated due to the turbulent crypto waters of the last few weeks.
The effect of Bitcoin on altcoins cannot be ruled out.
XRP is one of the most valuable alternative cryptocurrencies. Therefore, depending on the action of BTC, XRP tends to move in tandem. At present, this is what affects XRP and altcoins across the board.
However, XRP faces even more challenges. For one thing, the coin, compared to ETH and BTC, is poorly liquid.
After the SEC declared XRP as an investment contract, most exchanges, including Coinbase and Binance, suspended trading.
Most said they would re-list XRP once there is regulatory clarity.
Will Coinbase Retrade XRP?
The good news now is the events of the last few months.
Ripple appears to be winning against the SEC.
Consequently, some quarters of the ever bullish XRP Army now say that the coin would resume trading on Coinbase. If that happens, there could be a relay rally, lifting the coin from seventh place.
Still, traders must wait until clarity is found and Coinbase, which has been increasing support for a wide range of tokens and currencies, lists the asset, exposing it to 'hungry' traders.
Before that, Ripple's fundamentals, such as smart contract support and sidechain launch, drive XRP's valuation.
Ripple price analysis
Ripple's price is down seven percent from the week to date and reflects the general state of the market.
Notably, the coin has broken below the bearish flag and primary support at $ 0.85 as sellers push lower. Technically, the path of least resistance, reading the price action on the daily chart, is to the south.
In addition to this impression, bearish XRP bars cluster along the lower BB, suggesting increased selling pressure and lower lows probabilities.
Reading this, aggressive traders can find liquidation opportunities with each pullback towards $ 0.85 and $ 0.90.
The first bearish target is at $ 0.40.
On the flip side, gains above $ 0.90 (undoing the weekend's losses) invalidate the downtrend, reviving hit buyers.
Chart courtesy of Trading View
Divulgation: opinions expressed are not investment advice. Do your research.
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