The Ripple XRP token faced several stiff challenges as it battled with the SEC, thus prompting a bearish move down to $0.4734, indicating a 12% loss for this month. Moreover, the overall market downturn has been driven largely by Bitcoin's increased volatility which has affected the entire crypto space.
From a technical perspective, the XRP outlook is bearish. Recent patterns have not upheld bullish momentum leading to failure in supporting recent price movements like the June 7 break out from a symmetrical triangle indicating more downside risks. Even though there are periods of recovery here and there, XRP continues dancing within a historical descending channel having key support levels at $0.382 and $0.45 as well as resistance levels at $0.50 and $0.702.
The technical analysis of XRP/USD indicates that the current market is mostly bearishly oriented toward this cryptocurrency. As of now, the digital asset’s price stands at $0.47307 after registering a decline of 0.51% over the last 24-hour period. The cryptocurrency is trading below all three major Exponential Moving Averages (EMAs) – 20-day EMA ($0.48946), 50-day EMA ($0.50605), and 200-day EMA ($0.52583). This alignment shows that sellers have been in control during short-term or medium-term timeframes, while further suggesting persistent downward pressure because prices are staying below EMAs.
The decrease in price from April has created a series of decreasing peaks as well as decreasing troughs, which is a classic bearish trend continuation pattern. Also, this downtrend is supported by the MACD indicator that has remained below the zero line and its signal line. The slightly negative histogram bars mean weak bearish momentum, but it should be noted that the MACD lines are converging which may imply a slowdown in the bearish momentum if they continue to converge
XRP is currently approaching a critical zone around $0.47 which has been acting perfectly well for the past weeks. This level will be important to observe for if there is a strong bounce from here; bulls could find temporary relief and probably lead to short-term recovery. If this support breaks down considering prior price action, the next major supports would be at approximately $0.45 and $0.42.
On retracing up moves, XRP faces several obstacles before reclaiming some losses on the chart. Resistance standing at immediate 20-day EMA ($0.48946) followed closely with psychological $0.50 also in line with 50-day EMA ($0.50605). To change near-term sentiment upward, these levels need to be breached and closed above them forcibly. Furthermore, higher up 200-day EMA stands at $0.52583 forming an important resistance point for this pair as its value tries to reverse gradually into uptrend. Further up, the 200-day EMA at $0.52583 represents a significant barrier that bulls would need to overcome to indicate a more substantial trend reversal.
The investor sentiment remains split with speculation about legal outcomes. This adds uncertainty to the looming July 8 deadline for Ripple and SEC to consider their motion to seal documents. For instance, MekaMark suggests that XRP could rally significantly should the courts give clarity in favor of Ripple, which might push its price to around $1. However, declining network activity and continuous regulatory issues have heavily impacted trading volumes now at $860 million after falling by 27%
As EGRAG CRYPTO noted, a leading analyst specializing in cryptocurrency trends, XRP is at a critical point in time with the ongoing legal disputes and market developments. EGRAG CRYPTO still believes that XRP has what it takes to endure recent setbacks as well as become one of the most powerful market players someday.