XRP continues to consolidate
A month on since my last update and XRP continues marching sideways.
Last month, I highlighted how the XRP party had come to an end after Bitcoin et al. had an ugly sell-off that still shows no sign of abating and technically, things do not look pretty either.
The XRP price slumped below its 200 EMA last month which had been acting as support since the beginning of the year.
Buyers jumped back in at around $0.50 which gave XRP a little hope, but since then it only managed to crawl back as high as $0.71 before turning back to trade at $0.59, at the time of writing.
I was optimistic about XRP not going below $0.50, however, the bigger picture continues to look awfully bearish across the board despite the sell-off slowing down. From here, I wouldn't be surprised if XRP dropped another 20 cents, wiping all of 2021's gains.
Bitcoin has also failed to gain any traction and continues its journey south. Like XRP, Bitcoin has also been on a sideways move since the middle of May, and if sellers continue the pressure and crack its current support levels ($30,500s) Bitcoin will be on course back to mid 20k.
This week analysts have warned that crypto prices were "in danger" following China's crypto mining crackdown.
Adam James, from crypto exchange OKEx, said China Bitcoin and Ethereum miners dumping CPUs is not a "surprise".
He said: "[It] doesn't come as a surprise given the fact that China seriously cracked down on Bitcoin mining in the country but the development may be interpreted as fundamentally bearish, nonetheless."
Alex Kuptsikevich, FxPro's senior financial analyst, added: "There is a summer lull in the crypto market which may just be the calm before the storm.
"If the market is affected by a small number of open positions, then any small storm could turn into a large-scale sell-off, disrupting an avalanche of stop orders.
"But the most alarming thing for crypto-enthusiasts is that such an outcome will underscore the prolonged nature of the correction, increasing speculation around a new 'crypto winter' like in 2018."
Stay safe out there.