The past few sessions had the crypto market dipping in the red zone. The global market capitalization plummeted towards the value area of $2.24 trillion at this publication. That is after cracking the $3 trillion mark recently. Meanwhile, the broad market lost over 15% of its value within the past 24 hours.
While writing this content, XRP was among the tokens that suffered most from the crypto sell-off. For now, Ripple’s token trade at $0.72 after shedding nearly 1-thirst of its price in a day.
Watch These Crucial Levels
For now, XRP is in a somewhat tricky position, even though critical support levels surround the cross-border transaction token. The immediate support for the altcoin stands at 78.6% FIB level near $0.7. Ripple will have a further barrier to the downward at $0.5.
The price chart showed that XRP plummeted towards the lower levels at $0.0600 early Saturday. However, the alternative coin recovered within no time, climbing to stabilize past the $0.7071 barrier.
If the upcoming sessions see large-cap alternative coins extending downswings, XRP bears might drag the remittance token lower. That will mean losing a significant amount of its price. Moreover, 100% extension will serve as XRP’s support.
Metric Show Hope despite Massive Fall
Though the massive price plunge, one among the XRP’s-related metrics shows optimistic forecasts. While publishing this analysis, XRP had a prominent buy signal on the DAA divergence chart. That is a bullish signal since it reflects an increase in active addresses during the price dip.
On the other side, the MVRV suffered a massive dip over the past session. MVRV remains somehow synonymous with XRP actions in May 2021 at the moment. That depicts the negative sentiment by the altcoin’s HODLers.
For now, fear wrestles the market, explaining the readings by the metric mentioned above. It might take time before the market sentiment changes for Ripple to recover. Until that occurs, XRP must avoid plunging under its support floors.
For now, XRP will have chances to surge back to $0.85 in the coming few hours if bulls step up with massive price-lifting. Meanwhile, the alt can remain stuck at $0.7 or plunge further lower towards price levels at $0.51.