The cryptocurrency’s parabolic rally came about shortly after it plunged to lows of $0.23 before rallying to the top of its multi-year trading range around $0.30. The break above this level came about swiftly and allowed it to see some immense momentum.
Adding fuel to this sharp price rise was mounting hype surrounding the airdrop distributed to XRP investors yesterday, which was widely thought to have the potential to provide holders with some valuable tokens – similar to the airdrop seen by Uniswap.
It has been unable to gain any strong momentum in the time since and is still flashing some signs of weakness as bulls struggle to maintain its recent momentum.
One analyst is pointing to this latest rally and noting that it is structurally similar to those seen in years past that have always resulted in full retraces.
XRP Plummets Following SPARK Airdrop
It does appear that the airdrop was a “sell the news” event, as it started reeling lower right around the time of which the SPARK snapshot was taken of XRP balances on platforms that are supporting it.
Because the crypto is now showing signs of technical weakness, it could be a matter of time before it drifts back towards its multi-year trading range.
Trader Claims Latest Pump is Structurally Similar to Previous Ones
This means that it may see a swift decline in the days and weeks ahead as traders take profits on this movement.
“Whole lot of noise about XRP the past few days for a chart that’s slowly filling it’s inefficiency like it’s done every time in the past.”
Image Courtesy of Chase_NL. Source: XRPUSD on TradingView.
Featured image from Unsplash. Charts from TradingView.