XRP has been on a downtrend since July and still continues to shed value. During this crash, the XRP held in exchange reserves lost value by $ 50 million during the past month alone.
On the daily chart, XRP has been on a downward trend since July. The coin was trading at $3.6 mid-year, after which the market started to take profit. With this sell-off turning into a full-on selling frenzy, the token crashed from above $3.5 to as low as $2.06, losing nearly $1.5 per token within the past 5 months.
While the coin was crashing, there was still hope when XRP was above the 200-day Moving Average, however, all hopes faded after it crashed below this pivotal support level. To add insult to injury, a death cross occurred. The 50-day MA crossed the 200-day MA below it. When this happens, the market calls it a death cross as the prices will further crash.
Even the technical indicator, the Relative Strength index (RSI), fell below the RSI-SMA, indicating that the XRP price is below par.
And this fall comes during a time when the traders are pulling away XRP from the exchange, tanking the supply. The exchange reserve fell from as high as $2.8 billion to as low as $2.7 billion within a month. In addition to the supply draining, the price was also crashing causing an overall loss of more than $50 million.
Usually when the supply on the exchanges runs dry, this creates a demand and the prices move higher, but not XRP. Despite XRP supply draining, the token did not appreciate.
But there is a silver lining. The weekly XRP chart shows that it is heading towards a prominent support level. If XRP holds above the $1.9 level, the coin will rebound and will once again head towards the $3 mark. However, it has to clear the resistance level at $2.30 which happens to be also the 50-day Moving Average.
