Ripple (XRP) price fell to $0.50, the key short-term support line, today before buyers have emerged to buy the digital asset at a compelling valuation.
Fundamental analysis: Ripple users impatiently await the airdrop after Coinbase announces support
The airdrop, which is scheduled to take place on December 12, will be supported by the popular cryptocurrency exchange Coinbase.
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“The amount of spark you’ll receive depends on how much XRP you had in your account at the snapshot time,” said Coinbase. Holders of XRP are expected to receive spark tokens from Coinbase later in future.
“We plan to distribute the airdrop after the Flare network launch,” Coinbase wrote in a Twitter post. The Flare network was created to offer ethereum-like functionality to the XRP Ledger with spark tokens the platform’s native digital currency.
The airdrop, which will include around 45 billion spark tokens, will be backed by Ripple’s investment branch RippleX. Other notable crypto exchanges like Binance, Bithumb and Bitstamp will be joining Coinbase to back the airdrop.
Crypto analysts said the building hype over the upcoming airdrop is one of the factors behind XRP’s strong rally last month.
“The impending airdrop is supercharging the XRP bull market and whipping mindshare of one of the largest crypto communities into a frenzy,” said Jehan Chu, a managing partner at blockchain investment company Kenetic Capital.
Technical analysis: Textbook correction
XRP/USD price has more than doubled over the past few weeks, driven by a strong rally in Bitcoin which has hit a new all-time high and the long-awaited XRP airdrop. The correction that is underway has stopped at $0.50, which is the key short-term support line for XRP buyers.
More precisely, the price action rotated lower to retest the broken resistance around the $0.50 mark (the red line). This was then used by the bulls to pick up the price at an attractive level in a hope to revisit multi-year highs around the $0.80 handle.
Summary
Ripple’s XRP has significantly surged in price over recent weeks, fueled by a Bitcoin’s sharp rally and the long-anticipated XRP airdrop which will occur on December 12. A temporary correction has stopped at $0.50, an important technical level.