Ripple’s XRP token is in dire straits after yet another red weekend that saw the world’s third-largest cryptocurrency fall by more than 5%.
XRP was rejected from the $0.23 level of resistance which previously acted as support throughout September, indicating that more downside price action is likely in the coming weeks.
It desperately needs to hold above $0.21 or it could well drop to its lowest point in more than two years, with analysts suggesting it could reach the $0.16 and $0.11 levels of support.
The nervous descent in price comes after a rocky year for XRP and the company behind it, Ripple.
Ripple CEO Brad Garlinghouse has vocally defended the project in spite of criticism surrounding its status as a security and the alleged token sales that happen over-the-counter.
The 48-year-old came out and adamantly stated that “Ripple is not a security” while complaining about the vast amount of “FUD” that is being spread about the project.
Ripple’s token was premined, which means that much of the total supply is being held by the founders and can potentially be offloaded to investors at a discounted rate, causing the price to fall.
XRP needs to break above $0.23 and $0.26 if it stands any chance of triggering a reversal from this gruelling bear market.
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