XRP Faces Downward Pressure Amid Legal Battle
The price of XRP is currently under pressure and there is a risk of it falling below the $0.50 support level. This comes as Ripple, the parent company of XRP, continues its legal battle with the SEC.
Analyzing XRP’s Potential Trajectory
A crypto analyst using the pseudonym TheSignalyst shared insights on XRP’s potential trajectory in a post on TradingView. The analyst identified critical levels to watch for bulls to regain control over XRP.
The analyst noted that XRP has been in a bearish trend within a descending channel, with significant support at $0.5. The key question is whether this support will hold and lead to a bullish reversal.
Support Levels and Potential Upside
As long as the support level of $0.465 remains intact, there is optimism for short-term buy setups. However, a move below this level could trigger further bearish sentiment. The analyst also highlighted that XRP still has upside potential if key price movements occur.
“As long as the support $0.465 holds, we will be looking for short-term buy setups on lower timeframes. For the bulls to take over from a short-term perspective, we need a break above the last minor high at $0.55. And then for the bulls to remain in control and take over from a medium-term perspective, we need a break above the upper red trendline and last major high at $0.6,” he said.
XRP Battles Bearish Sentiments
XRP’s ability to maintain its price above $0.50 is crucial for retesting the $0.60 level. Bulls see the current position as an opportunity to accumulate and drive the price higher. However, XRP has been affected by the overall market sentiment and lacks bullish catalysts.
The ongoing Ripple and SEC case has also impacted XRP. The SEC is seeking access to Ripple’s financial statements, a move that Ripple opposes. Additionally, XRP faced headwinds due to hacking incidents, resulting in the loss of 213 million XRP.
XRP Price Analysis
Currently, XRP is trading at $0.52 with a daily gain of over 3%. However, on the weekly chart, it has shown a decline of 1.6%. Technical indicators for XRP are bearish, suggesting a ‘sell’ rating for one-day gauges and ‘strong sell’ for moving averages.
Hot Take: Strong Fundamentals Needed for XRP
XRP’s price rally will depend on strong fundamentals and support from Ripple’s underlying business. While it follows the general market trend, it needs additional factors to initiate a potential upward movement.
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