XRP price explosion to $0.90 followed by sharp correction due to problems on Coinbase
The XRP price has just as spectacularly collapsed again within seconds after its rapid rise to $0.90 on Coinbase. Nevertheless, the native crypto currency of Ripple has undoubtedly awoken from its deep winter and has recorded a real price explosion with a price increase of 53.4% in the last 24 hours.
The XRP price climbed to over $0.90 on the US crypto currency exchange Coinbase today, only to plummet again by around 30% within seconds. Ripple’s XRP thus Bitcoin Machine marked its highest price level since May 2018 – even if only briefly.
In this article we take a look at what is behind this rollercoaster ride of the XRP price and to what extent Coinbase is involved. Of course we also take a look at the chart to analyse how things could go on from here.
XRP price explosion driven by Coinbase traders
The price level close to the $1 mark was apparently driven by Coinbase traders. The assumption is obvious, as the XRP price did not reach the same levels on other exchanges. Bitstamp and Binance, for example, only saw a high of „only“ $0.79 during the same rise.
Many also suspect that the sudden crash is directly related to technical problems on Coinbase. In any case, the hashtag „Coinbase“ on Twitter in the United States began to take fire.
While the official status page of Coinbase currently states that everything is functioning normally, other sources show that the stock exchange is indeed struggling with problems. For example, the following graph shows that this morning the stock market went down.
The positive momentum that has developed in the XRP course should not have escaped the attentive readers of CryptoMonday.de.
Both in technical and fundamental terms, there were enough indicators to point this out. Most importantly, the news of a so-called „buy-back programme“ by Ripple in its last quarterly report may have provided the necessary confidence in the future price trend of the crypto currency.
On the weekly chart of XRP, we can also see that a complex head-shoulder bottom formation had formed and, as it crossed the neckline, has led to an explosive price rise over the past two weeks. But it is clear that this steep rise is crying out for a correction. Especially since $0.80 seems to be showing resistance.
Possible support levels are found at $0.60 and $0.50. Should the XRP price succeed in establishing one of these levels as support, this would in any case be constructive for its future price development. Ripple’s XRP is currently trading at $0.65.