Due to the recent plunge in its value below the $0.40 support line, XRP has lately commanded considerable attention in the cryptocurrency community. This bearish turn of events has raised questions about near term sustainability of this digital asset. As things stand, XRP is having a hard time recovering and holding above $0.40 which is crucial for instilling trust among investors. At the moment, XRP recoveries were underway with prices at $0.4352 representing a 0.40% drop from an intraday high.
XRP’s market cap fell by 0.53% during this decline as 24-hour trading volume rose by 70% to reach $1,234,222,793 on increasing buyer interest into the dip.
According to Dark Defender, a well-known crypto analyst, XRP’s price trajectory might witness significant fluctuations in volatility levels going forward. Nevertheless, despite this recent collapse in values, Dark Defender argues that there could still be hope for XRP to bounce back and hit an all-time high of $18. However, this just appears to be a dubious price target without any strong technical grounds.
Technical indicators, including Ichimoku Cloud and Fibonacci retracement levels were used for the analysis of XRP’s weekly chart by Dark Defender. He stated that since the XRP touched its Fibonacci support at $0.3917, there is a possibility of an upward trend possibly starting.
The Ichimoku Cloud, widely used in technical analysis to identify trends and support/resistance levels, shows that XRP has been trading against strong resistance. A break above this cloud could signal the beginning of a new bullish phase.
The analyst highlights potential price targets for XRP at $1.88, $5.85, and an ambitious $18.22. To reach this ambitious target would be equivalent to a 4,238% price hike from its present value. Nevertheless, a drop below $0.3917 would negate this bullish setup.
XRP’s price movement is also influenced by broader market trends and ongoing legal challenges. The general bearish sentiment in the cryptocurrency market has hindered XRP’s ability to reclaim the $0.50 mark. Despite some attempts at recovery, the token has faced resistance and remains below key support levels, reflecting overall market pessimism.
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) casts a shadow over XRP’s future. The legal dispute centers around allegations that Ripple sold XRP as an unregistered security. Recent court rulings have had mixed outcomes, with significant decisions expected in the coming weeks that could influence XRP's regulatory status and market performance.
Analyzing the weekly performance of XRP, the token has seen a decline in its value, falling by over 9% in the last week, and 12% in the last month. The RSI of XRP shows that the token is at present oversold, which may lead to a price increase soon.
This is a typical scenario when the selling pressure easing and in this case it is possible that buyers will come back to the market and push the prices upward.
Nevertheless, XRP has continued to attract attention from the traders as evidenced by the continued trading activity in derivative markets. But the openinterest for XRP has been decreasing; this points toward having fewer market participants. This shows that investors are not willing to engage in many trades because of the legal issues and fluctuations in the market.