XRP price is starting to give back some of the gains it built this week. The token, which comes from Ripple’s payment system, exploded spectacularly after last week’s ruling that favored Ripple in the lawsuit against the US Securities and Exchange Commission (SEC).
The judge ruled that XRP sales, particularly on exchanges, are not securities, a decision that saw investors scramble to seek exposure to the international money transfer token in hopes of a subsequent rally, possibly above $1 and toward an all-time high of $3.40 in January 2018.
After the first break of the extended sideways price action in the range between $0.45 and $0.55 to highs not seen since December 2021 at $0.93, XRP price rolled back to confirm support at $0.7.
In the previous analysis, XRP price had regained ground above $0.8, but the $0.85 resistance capped renewed bullish momentum. Now XRP is facing a potentially massive retracement as it trades at $0.7785, down 5% on Friday.
What’s Next If XRP Price Exits $1-Bound Rally
The Moving Average Convergence Divergence (MACD) has reaffirmed the strengthening bearish grip and flashed the second sell signal in a week. Short traders, depending on this momentum indicator, keep an eye out for bearish crosses, which manifest with the MACD line in blue flipping below the signal line in red.
Four Hour XRP/USD Chart – Tradingview
The Money Flow Index (MFI), an indicator that measures the amount of money flowing in and out of XRP markets, shows that sellers have the upper hand. If investors continue with this defeat, XRP could realign itself with its competitors – Bitcoin and Ethereum, which have been generally range-bound since the breakout in early June.
A period of consolidation is likely to follow between the $0.7 support and the $0.8 resistance. The 50-day exponential moving average (EMA) (in red) is poised to dampen selling pressure at $0.73 and ease pressure at the primary support at $0.7.
XRP Price Fractal Risks 65% Split – Cointelegraph
According to a fractal analysis conducted by Cointelegraph, the XRP price could be at risk of a massive 65% drop by September. Some of the signals the analysts have been considering are the overbought Relative Strength Index (RSI) and “the multi-year falling trendline resistance”.
XRP/USD Weekly Price Chart – Cointelegraph
XRP’s price rising trend has capped below the falling trendline resistance since 2018. In addition, a horizontal resistance line around $0.93 further complicates the situation for the top four cryptocurrencies.
Given the resistance lines and the overbought RSI, the price of XRP may be headed for a market correction, targeting support at $0.52 in September, implying a 40% drop from its current market value.
The 50-week EMA (red) strengthens the $0.52 support, which could result in a bounce. The same support played a critical role in XRP’s price recovery in Q2 2021. For now, XRP is still one of the best performing cryptos in July, up 57% in 30 days.
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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience abreast of the latest crypto news, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
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This post XRP Price Drops 5% in 24 Hours – Is It the End of the Road for Bulls?
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