The cryptocurrency market did not expect the bearish news 12-13 March would bear.
After periodically dropping in price throughout the 2nd half of February, the market recorded some positive movement in early March. However, those surges and gains over 2020 were completely washed out in the last 24-hours. XRP suffered a devastating pullback too, reaching $0.14, a figure last touched 34 months ago.
At press time, XRP’s market cap was recorded to be around $7.1 billion, with a 24-hour volume of $5 billion.
XRP 1-day chart
The 24-hour turnaround for XRP was 38 percent on 12 March, movement which drove the market into a state of panic. Fundamentally, the drop cannot be explained accurately through market patterns at the moment as the dump took place following a descending channel formation.
The pattern started taking shape after XRP hit a high of $0.33, while registering lower highs at $0.30, $0.28 and $0.246. The lower lows were marked at $0.26, $0.22 and $0.20, setting the price up for a usual bullish breakout.
The move in the opposite direction indicated a busted breakout as the price dropped below key support levels at $0.21 and $0.186.
With major indicators turning alarmingly bearish, the bullish momentum looked rather bleak at the moment and the possibility of an immediate breach of $0.21 is fairly difficult.
The 200-Moving Average was also acting as an active resistance, at press time, after the price collapsed under it on 26 February.
Worst could be over. . . for now
Accounting for all the signs, it is fair to say that any constructive argument towards a bullish narrative seems a little far-fetched, but the worse could be over for the third-largest asset and the collective market.
XRP fell down to $0.13 on 12 March, but the price did not consolidate in that range. Over the past 12 hours, the token had risen by 16 percent. Although the price rise is a usual period of correction, it is important to note that the valuation could climb above $0.186 over the next 12 hours.
Another important reasoning is the fact that XRP rose up to $0.34 in 2020. For any token registering its yearly-high, a pullback by 50 percent is usually considered healthy, something illustrated by a majority of the tokens. If the token undergoes another pullback and continues movement under $0.186 over the next week, it will be difficult to see XRP rise in the near-term.