XRP Price Reversal and Critical Support
The XRP price is currently reversing its gains from last week, encountering resistance at $0.51. This uptrend, though brief, began after the token reached $0.488, a support area that previously halted a major correction from its yearly high of $0.93.
However, with four consecutive bearish candles in the four-hour chart, the XRP price is struggling to stay above $0.5. This level is crucial for the continuation of the uptrend and must be protected at all costs.
Signs of Vulnerability and Potential Losses
If XRP falls below $0.5, it could become even more unstable, potentially triggering new short positions from sellers. A bearish signal would be confirmed if the Moving Average Convergence Divergence (MACD) indicator shows a bearish cross, with the blue MACD line dropping below the red signal line.
In the event of further losses, the first target for XRP shorts is the short-term support at $0.488. If selling pressure persists, XRP may test the next price point at $0.4.
Keeping Buy Positions Active and Reclaiming Support
Traders should consider maintaining their buy positions if support at $0.5 and $0.488 holds. This gives the token an opportunity to build momentum for a potential rebound above $0.51, specifically the 50-day Exponential Moving Average (EMA).
Reclaiming the 50-day EMA support/resistance is crucial for XRP to break out of its stubborn range at $0.55.
MACD Indicator and Bullish Potential
Despite the ongoing daily candle, the MACD indicator indicates a bullish hold on XRP. However, the token is currently facing a weak market structure due to lack of momentum and liquidity. With both factors in favor, bulls may have a chance to overcome the descending trendline and reach resistance at $0.55, potentially leading to further gains at $0.6 and $0.8.
XRP Investment Products Inflows and Ripple’s Legal Battle
According to the latest CoinShares weekly report, inflow volume in XRP investment products has been decreasing, with a decline of $2.7 million over the past four weeks. Despite this, XRP remains one of the top choices for investors, following Bitcoin, Short Bitcoin, and Solana.
On the other hand, on-chain data shows an increase in XRP adoption in the US, particularly on Coinbase, one of the popular centralized exchanges. XRP trading volume has been consistently higher compared to other tokens, averaging $462 million in the last month.
In addition to market factors, Ripple is facing a legal battle with the SEC. Ripple has opposed the SEC’s decision to appeal the July court ruling, specifically regarding the application of the Howey test. The trial is expected to take place in the second quarter of 2024.
XRP price may experience a significant breakout later this month when Ripple announces its IPO plans during the Proper Party event. This announcement could help restore investor confidence in the project.
Hot Take
The XRP price is currently at a critical point, struggling to maintain its recent gains. Traders should closely monitor support levels at $0.5 and $0.488, as a breach could lead to further losses. However, if support holds, there is potential for a rebound and a breakout above resistance at $0.55. Additionally, XRP’s adoption and trading volume continue to show promise, despite recent market challenges. The outcome of Ripple’s legal battle with the SEC and the upcoming IPO announcement could also have a significant impact on XRP’s future performance. Overall, it is an interesting time for XRP investors and traders, with both risks and opportunities on the horizon.
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