This week kicks off the annual Swell event hosted by Ripple, which gathers together the greatest minds and influencers from the crypto and general finance space under one roof to talk about the future of fintech.
Each year, the conference causes a pump leading up to it, but later dumps following Swell in a “buy the rumor, sell the news” type selloff. One crypto analyst believes that if the dump gets severe enough, it could cause another 50% drop in XRP price.
Annual Conference Causes Ripple Price to Swell
Back in 2017, Ripple first began its annual Swell conference where it has hosted big names like former United States President Bill Clinton, former Fed Chairman Dr. Ben Bernanke, and Sir Tim Berners-Lee, regarded as the inventor of the world wide web.
The surge in interest around the company and their native cryptocurrency, XRP, and the expectation of hot industry news breaking during the event, often leads to a pre-event pump, driving up the price of XRP.
Related Reading | Will Upcoming Ripple Conference Cause XRP Price to Swell?
Even this year, Ripple had fallen to a new low of $0.24 cents per XRP token, and as the Swell conference inched closer and closer, the crypto asset rebounded back to $0.30 where it is currently trading.
But now that the event itself is underway, investors may be preparing to “sell the news” and dump any XRP bought in anticipation of a more significant pump. And if the dump gets severe enough, according to one crypto analyst, it could push XRP below current support, resulting in another 50% drop from current levels.
Genuinely do NOT understand why everyone is bullish on this?
– Diagonal resistance didn’t break in 600 days (recent rejection)
– Huge 50% gap to next support
– Rejected from previous support, now resistance
– SWELL DUMP
– It’s @Ripple c’mon— TEDDY
(@teddycleps) November 7, 2019
XRP Price At Risk of 50% Drop Following Sell the News Event
With Swell in full effect, the pre-event pump phase has already passed, and the XRP/BTC trading pair failed to gain enough momentum from the event to break through a 600-day long diagonal resistance. The rejection at diagonal resistance has put the crypto asset at risk of a further fall to the next support level.
As one crypto analyst points out, a gap lies below current support and if it fails, XRP could fall from a price of 3100 sats currently, to as low as 1400 sats – the next level of support dating back to late 2017 – just before the asset skyrocketed to its all-time high.
Related Reading | Ripple Whale: It Only Takes $20,000 To Become a XRP One-Percenter
The fall to that level of support, however, may be the launchpad Ripple needs to take the price of XRP through diagonal resistance and back to prices closer to the all-time high it set back in 2018 – of nearly $4 per token.
Ripple is still currently down over 90% from that all-time high price of $3.82 it set back in January 2018. To return to that number, Ripple would need to have an over 1,100% gain from current prices.
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The post Could a Post-Swell Ripple Dump Cause XRP To Drop Another 50%? appeared first on NewsBTC.
Source: https://www.newsbtc.com/2019/11/07/could-a-post-swell-ripple-dump-cause-xrp-to-drop-another-50/