Ripple price is down by more than 2% becoming one of the worst-performing major currencies in the world. The currency is trading at $0.2990, which is lower than this week’s high of $0.3720. Other digital currencies like Ethereum, Bitcoin, and Chainlink are soaring today, pushing the total market cap of coins to more than $1 trillion.
What is happening: Ripple price has been under intense pressure in the past few weeks. Indeed, its price is down by more than 67% from its highest point last year. This happened after the Security and Exchange Commission (SEC) launched an investigation about Ripple, the founder of XRP.
In subsequent weeks, many online exchanges withdrew XRP, leading to lower demand. And yesterday, Grayscale announced that it was dissolving its Ripple Trust. This will equally lead to less demand and supply of XRP in the market.
Still, Ripple has managed to bounce back this year. In fact, from December 29, the cryptocurrency has jumped by more than 76%, becoming one of the best performers. This is partly because many investors believe that Ripple will prevail in the lawsuit. Others believe that it is a better investment because of how cheap it is.
XRP technical outlook
Ripple price prediction: On the four-hour chart, we see that the XRP price has formed an inverse head and shoulders pattern, with the head being at $0.1705. The neckline of this H&S pattern is at $0.3711. The price is also along the 25-day and 15-day EMAs while the price is slightly above the 23.6% retracement level.
Therefore, in my view, the price will likely break-out lower after this consolidation phase. If it does, the next level to watch is the support at $0.2526.
Ripple price chart