Each year, the annual Ripple-hosted Swell conference causes a strong XRP price pump leading up to the event, but the asset typically corrects in a post-event sell-off back to normal price ranges.
This year, the pump was underwhelming, and according to one crypto analyst, has amounted to nothing more than a bearish retest that was rejected, signaling that XRP may have a lot further to fall.
Swell-Driven XRP Pump Results in Bearish Retest and Rejection
Ripple’s annual conference acts as a gathering of the finest minds in the finance sector and payments space, putting a central focus on the company’s many products and services, as well as Ripple protocol’s native cryptocurrency token, XRP.
In past years, it’s acted as a stage for big names like former United States President Bill Clinton, former Fed Chairman Dr. Ben Bernanke, and Sir Tim Berners-Lee, often considered to be the inventor of the world wide web.
With so much news and buzz expected from the event, investors begin loading up on XRP in advance of each year’s Swell, causing the price of the asset to swell, as well. This year was no different, and the price of XRP rose from a fresh bear market low at 21 cents per XRP, to as high as 31 cents before the asset was rejected and a sell-off began.
$XRP Imagine holding this crap for a year with the hopes of a Swell pump only to get a bearish retest.
Absolutely necccable pic.twitter.com/mDcueWMyGF
— CryptoDude (@cryptodude999) November 20, 2019
The resulting Swell pump and following rejection, according to one crypto analyst was nothing more than a bearish retest of former diagonal support turned resistance. And now that the asset has been rejected from key resistance on high timeframes, XRP is at risk of falling much further.
Ripple Rejection Coincides With Long-Term Moving Averages, Is 1 Cent Ripple Ahead?
Interestingly, the diagonal support where the Ripple Swell pump was rejected from also coincided with a retest of both the 50-week and 200-week moving averages. XRP was unable to close a weekly candle above either of the key moving averages, and it could signal that another massive decline is coming.
Below current price levels, horizontal support lies at roughly 14 cents per XRP – a support level dating back to the 2017 crypto bull market. If support there cannot hold, a far deeper drop would be possible, one that would take the price per XRP to as low as 3 cents per XRP.
Related Reading | Could a Post-Swell Ripple Dump Cause XRP To Drop Another 50%?
Long-term support lies back as low as one cent or lower per XRP, which would take Ripple back to pre-crypto bubble prices. However, such a drop would represent another 90+ percent fall from current prices – and Ripple is already down over 90% from its all-time high price of $3.80.