XRP plunged yesterday, crashing below $0.46 after roughly four months of distribution. Looking at the formation in the daily chart, it is clear that sellers are back in the picture. Despite initial hope, with traders expecting prices to bounce above $0.55 after gains in mid-June, the coin tumbled today. By falling, XRP effectively extended mid-this week’s losses, crashing any attempt to prop up prices. Unless buyers unexpectedly flow back today, reversing losses, it will be a rough day for bulls.

Like the market-wide losses across the board, XRP is in red and fragile. Of note, the seventh most valuable coin is below crucial support, a cause for concern. After months of boring sideways movement, the coin is down roughly 13% in the past day and week.

As price action dominates, Ripple and XRP traders should also watch the following news events:

• Yesterday, Ripple, the blockchain company using XRP in their On-Demand Liquidity (ODL) solution, announced the launch of a new API. Through this interface, developers would be free to test borderless payments using simulated funds.
• After filing for a Notice of Supplemental Authority, following the ruling on the United States SEC versus Binance case, Ripple hoped for the best. However, as it turned out, the regulator’s lawyers said the case was irrelevant as the court prepares to rule on the penalty the blockchain company should pay.

XRP Price Analysis

XRP/USD is down 45% from March highs.

The primary trend is bearish, following the bearish breakout formation of April 13.

Since bulls didn’t break above $0.55, nullifying the emerging bear trend, the drop of July 4 confirmed the downtrend. Of note, yesterday’s crash meant XRP broke below a multi-week consolidation after the dump in mid-April.

Therefore, in light of these events, aggressive traders might consider selling on every bounce, targeting $0.35 and $0.30 in the short term.