The XRP price continues to sit on a crucial support level, and is at risk of a big crash as market risks rise. Ripple is trading at $2, an important point where bulls must hold to prevent a dramatic collapse to $1. This is happening as fear spreads in the market and the XRP Ledger growth stalls.
XRP Price Could Crash as XRP Ledger Growth Stalls
The XRP coin price has reacted mildly to some notable news lately. It remains lower than where it was when the SEC ended its appeal in March. Most recently, the coin has remained under pressure after Coinbase filed to offer XRP futures, a move that will lead to more institutional demand.
Meanwhile, data shows that the XRP Ledger’s network growth has largely stalled in the past few months. It has a total value locked (TVL) of $80 million, up from near zero in the same time last year. However, this figure has been largely unchanged since January 28.
XRP Ledger TVL
The same trend is happening as the ecosystem growth remains stagnant. Ripple USD (RLUSD) is the only asset seeing growth in the ecosystem, with its market cap standing at $293 million. The other top players in the network are Crypto Trading Fund, Sologenic, and Coreum. Less than 20 crypto coins in the XRP Ledger have a market cap of over $1 million.
XRP price may also crash because of the rising fear in the financial market. The closely watched fear and greed index has tumbled to the extreme fear zone of 6, the lowest level since the pandemic. This drop happened after China retaliated to Donald Trump’s tariffs.
Fear and Greed index
Ripple Price Technical Analysis: To Crash if it Loses Key Support
The daily chart shows that the XRP price is slightly above the important support level of $1.9811. This is a crucial level because it is the neckline of the head and shoulders pattern that started to form in December last year.
The left and right shoulders are at $3, while the head is at the year-to-date high of $3. A H&S is a highly popular bearish reversal pattern that ushers in the markdown phase of the Wyckoff Theory.
Therefore, losing the support at $1.9811 will point to further downside, potentially to the psychological point at $1, which is about 51% below the current price.
XRP Price Chart
The bearish Ripple price outlook will become invalid if the coin rises above the resistance at $2.60, its highest level in March.
The post XRP Price Teeters on the Brink of a Crash as XRP Ledger Growth Stalls appeared first on CoinGape.
