• Analysts predict a 30% drop for XRP after losing significant support.
• The Xpring report reveals that XRP is used as a medium of exchange, particularly among Ethereum ( ETH ) users . 

Despite its recovery in recent days, the crypto market has also seen an increase in volatility. In the top 10 cryptocurrencies, Bitcoin had the biggest gains with 10% and 36.94% in the weekly and monthly charts. Altcoins have struggled to keep up with Bitcoin's earnings, as the first market-capitalized cryptocurrency is struggling to break the large $ 10,000 mark.

XRP could test new lows

In the top 10, only Ethereum and Tezos are close to BTC gains in the monthly chart, but in the weekly chart, they show only slight gains. The asset with the worst weekly performance is the XRP with a loss of 6.27%. As reported by CNF, BTC's performance over the past few days describes bullish prospects for Bitcoin . However, the formation of a golden cross on the BTC chart indicates to analysts that the future of altcoins could be bearish. In this sense, XRP has fallen below significant support levels.

At the time of publication, XRP was trading at $ 0.20 with gains of 0.41% in the past 24 hours. According to merchant Nik Patel:

(…) The market structure has recently broken down and has become bearish. This rupture also occurred in an important area: the 200-day moving average. If we start to see the price reject from a new test on the underside of this area, I expect a quick move below $ 0.175, then a new test of the low range at $ 0.125. Come back above and I will look for long positions, ideally with a price close above 200DMA, then I will retest it as support.

Patel's prediction is shared by Bitazu Capital's founding partner, Mohit Sorout. On his Twitter account, Sorout and Patel agree that XRP could lose almost 30% of its value. Sorout predicts that this will likely happen before the end of June.

ETH / XRP correlation for value transfer

On the other hand, an Xpring report reveals the predominant use case of XRP . According to the report, the digital asset has found uptake by Bitcoin and Ethereum users , especially those of the latter, to perform balance transfers in exchanges.

Likewise, the report concludes that the increase in gas prices and prices on the Ethereum network has a direct relationship with the increase in transactions between exchanges using XRP , as shown in the image below:

When the ETH cost per transaction is higher, there are also more XRP cross-exchange transactions . This is particularly true on days when the cost levels of ETH indicate severe congestion in the network (…). Overall, higher Ethereum charges are correlated to higher volumes of XRP (Pearson's R = 0.7, statistically, this is a significantly strong positive correlation). For example, March 12, 2020, transaction costs Ethereum have increased by over 400%. That same day, cross transactions XRP have increased by 226%.