Recently, the SEC’s Gary Gensler was asked for his opinion on whether XRP is an “unregistered security.” While he declined to comment in depth, he noted that the SEC was “trying to help push through with that fundamental deal.” The basic agreement was protection against fraud and full and fair disclosure to the public, whose money was raised. The SEC vs. Ripple case could have huge impact on crypto industry. As for the price movement of the token itself, the short-term outlook remained bearish.
Since August 2021, XRP has been trading in a bearish channel whose center (dotted white) has been at significant levels for months. This level was one of the main support points in October, but has acted as a strong resistance since late November. Short trips through the price above this level have been firmly rejected.
A similar story has been playing out over the past two weeks – the price finally seemed to climb past this midpoint, although the horizontal resistance of $0.89 was not claimed by the bulls. Over the past ten days, the price has been pushed below this midpoint again and has fluctuated between the $0.76 support level and the $0.84 supply area.
Therefore, a return visit to the $0.84-$0.86 in the near term would likely be a selling opportunity.
The hourly chart’s RSI stood at neutral 50, while the Stochastic RSI was in overbought territory. Together, they showed that XRP could test the USD 0.8072 resistance level in the coming hours.
The OBV has been falling in recent days. Interestingly, while the price had stagnated just below a major resistance area in recent weeks, the buying volume and the selling volume have been in equilibrium for the past two weeks.
The balanced buying volume suggested that bears and bulls were skirmishing, but there was no clear winner yet. The $0.76 level saw XRP bounce in the past few hours, but the $0.89 resistance level still remains strong. A bullish scenario seemed unlikely at this point, especially as Bitcoin could drop to $39k in the coming days. Even if BTC can pull itself back above $42k, XRP should see strong demand to rise above the $0.89 area. Therefore, $0.84 and $0.89 were probably not good places to buy XRP.
Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
This post The perfect starting point for XRP and why you shouldn’t wait any longer
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