- Ripple price sees massive outflows of funds as the demand-side dries up.
- XRP price is too far off from the upper barrier to make a return and can only go one way down.
- Expect another 50% drop to $0.173 before a bounce-off and turnaround could be triggered.
Ripple (XRP) has been thrown left and right into the woes of global markets, where central banks stirred the glass instead of just trying to calm it. Ultimately, it comes down to a chain reaction where high inflation eats in the disposable household bugdet and leaves less money to spend on luxury and cryptocurrencies, if there is even something left to spend. That market rotation is why cryptocurrencies tanked below 1 trillion USD market capitalization and are why XRP price still has more room to go as the fire sale selling has not even begun.
XRP price has not seen a fire sale yet
Ripple price has more pain to come, and although not trying to sound apocalyptic, there are bound to be some casualties in this cryptocurrency winter. Only the strong and viable cryptocurrencies will survive the freeze against those that only got backed by some hipsters but do not hold any long-term importance of support from key stakeholders within the sector. If XRP is one of those remains to be seen, it is getting dangerous as the last line of defense is nearing.
XRP price is already too far off from $0.40 to still try and maintain that level to pop back to $0.50. Instead, the selling gravity will trigger another leg lower in the descent of XRP price and looks set to go all the way to $0.17. That amounts to another 50% correction to the downside in what looks to be an actual pain trade after hitting $0.90 back in end-March, totaling 67.90% of XRP thus far gone up in smoke.
XRP/USD weekly chart
A turnaround could be there when some favorable tailwinds are strong enough to go head to head against those headwinds tagged by inflation and recession fears. A peace breakthrough between Russia and Ukraine, for example, or should the ECB come with a solid response to avoid a new EU debt crisis, could open up some room for XRP recovery. A quick pop to $0.46 or $0.50 would be possible with either the 55-day Simple Moving Average or a pivotal historical level as targets.