Ripple's current price
During a choppy trading session during the midterm elections, ripple price movements dramatically decreased overnight. The price of XRP (1) dropped once further due to the potential collapse of the FTX and Binance merger. As only fresh investors were beginning to forget the LUNA catastrophe, this deals cryptocurrency's reputation yet another devastating blow. Since last night, there has been another flight of capital and investors from the Ripple (XRP) price movement.
In addition to the midterm election anxiety driving away investors, traders' anxiety increased due to the potential collapse of the FTX exchange. The short statement by Binance that it will be purchasing FTX raises suspicions of foul play and has caused a complete breakdown of FTX's linked currencies, including Solana (2). The massive ripple effect reminds me of the LUNA fiasco earlier this year when the stablecoin nearly went into default due to its liabilities versus the higher dollar.
At $0.30, the price activity of XRP is ready to resume
The price movement of ripple is going through another crucial phase, not just for 2022 but also for its survival. Not just the price of XRP is being slaughtered; all cryptocurrencies are being slaughtered. Investors are pulling out of the asset class since the Binance acquisition of FTX seems shaky. Since there is no legal commitment or duty attached to the letter of intent for the acquisition, Binance is free to walk away from the agreement at any time, leaving FTX exposed and at risk of defaulting on its debts.
Thus, the price of XRP is under attack since this is yet another major public relations disaster for the already damaged asset class that has only recently started to recover and was trying to restore its reputation following the stablecoin bloodbath LUNA's collapse sparked before the summer. However, this outflow of investors might cause the XRP price to go below the key support level of $0.3710 and continue into the overnight low of $0.34.
What's to be expected next ?
Expect $0.30 to be in play and XRP to start teasing new lows for 2022 if this turns into a falling knife. Other asset classes like bonds or stocks would be the only thing that could resist this sell-off. Undoubtedly, a recovery in US stocks might provide cryptocurrencies a little boost and allow them to regain some immediate lost territory. By the end of this evening, $0.4228 would be a great recovery target, yet with the current large losses, S1 support around $0.4085 would be a better choice.