XRP Ripple (XRP) is in the red today, losing grip of its recent profits as the bears act on its value. The bulls had sustained the price momentum driving XRP Ripple (XRP) to $0.4688 on May 19. The investment traded within this range till May 24, when the bears dropped it to a closing price of $0.454.
On the other hand, today, XRP’s price has gradually declined to the $0.451 level as the bears continue to exert pressure on its price.
More Bearish Tendency For XRP
XRP Ripple (XRP) is in a downtrend today, forming a Second consecutive red candle on the daily price chart with lower lows. The investment trades below its 50-day Simple Moving Average (SMA), a short-term-bearish sentiment. The 50-day SMA signifies XRP’s average price over a specific period.
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Similarly, the Relative Strength Index (RSI) is 46.71 in the neutral zone and descending, further confirming a bearish sentiment for XRP Ripple (XRP). The RSI has two critical regions the overbought region and the oversold region. RSI values betwixt 70 and 30 are neutral.
Given the descending line of XRP’s RSI, the investment is entering the oversold region from which a tendency reversal is imminent.
XRP’s Moving Average Convergence/Divergence (MACD) is over its signal line, suggesting a positive tendency sentiment. Nonetheless, the MACD displays negative values, and its histogram bars hint at a bearish reversal.
The MACD identifies the tendency direction of an investment and is frequently used to place trades. As of now, it displays a tentative sell signal in the market today. But XRP Ripple (XRP) is trading over the 200-day SMA, suggesting a positive tendency tendency in the long run.
The crypto altcoin is currently worth the $0.4504 level of support as the bears seek to push it down. Bearish pressure at the $0.46591 resistance level pushed XRP Ripple (XRP) into a downtrend.
A further decline will see XRP Ripple (XRP) return to the $0.44446 level of support and push it to the oversold region. XRP Ripple (XRP) will likely record more price falls in the short term.
Nonetheless, since it is still trading over its 200-day SMA, a longstanding positive tendency sentiment, the bulls will rally once more once they regain control of its price.
XRP Ripple (XRP) Updates Can potentially Influence Price Action In Long term
Ripple Labs’ ongoing legal case with the United States Securities and Exchange Commission is likely one of the reasons behind XRP’s price downturn. Nonetheless, as the Ripple CEO stated, the case may likely conclude soon.
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Ripple Labs Attorney Kylie Chiseul Kim filed a letter to withdraw as legal counsel for their ongoing case. The Attorney is leaving her previous employers, Kellogg, Hansen, Todd, Figel & Fredrick P.L.L.C, and Devbevoise & Plimpton LLP. Nevertheless, the court filings indicated that the law company would remain counsel for Ripple Labs.
Featured image from Pixabay and chart from TradingView.com