XRP Flash Crashed: Will Ripple Bulls Defend $0.50?

XRP flash crashed to mark a weak end of last week. Despite attempts to plug in the bleed, sellers appear to be in control. Although prices are firm when writing—steadying over the weekend, all action remains inside the bear bar of October 25. The bar is bearish and engulfing, breaching the all-important support at $0.50 with rising volume. Considering the level of engagement, it is likely that sellers might press on today. This preview will only change if there is a sharp change in trend, breaking above the upper limit of the present range.

At press time, there is weakness. Whether what happened on Friday can spill over to today remains to be seen. However, what’s evident is that sellers appear determined. It shows in the collapse over the last week, forcing XRP to lose 6%. Amid this contraction in valuation, the average trading volume is also below $600 million.

Traders are watching out for the following XRP and Ripple news:

• Despite the worrying collapse, and risk of early October bears confirming losses, onchain data shows that there is a pickup in active sending addresses. With XRP Ledger supporting smart contracts, it signals entry of more people to the blockchain—a net positive for bulls.
• CMC data also reveals confidence, even with prices weakening. Over 80% of all voters expect the coin to recover steadily, even closing above September highs in the coming days.

XRP Price Analysis

XRP/USD is flat but weak at press time.

The October 25 bar will shape the short-term trend. In that case, its range at $0.48 and $0.53 will serve as triggers.

If there is a complete reversal, lifting XRP above $0.53, it could serve as an anchor for bulls targeting $0.55 and $0.66.

Conversely, and aligning with the dominant October trend, losses below $0.50 and $0.48 could see the coin crash, falling to $0.45 and July 2024 low of $0.40.