As an analyst with extensive experience in the cryptocurrency market, I believe that the current downtrend in XRP‘s price is not solely attributed to the recent court ruling. While the win against the SEC was a positive development for Ripple and its investors, misleading headlines and manipulation by rogue market elements have also contributed to the bearish sentiment.
Examining XRP‘s Price Movement: The value of XRP remained roughly stable at approximately $0.473 during European trading sessions on Monday, representing a 3% decrease over the previous 24 hours according to CoinGeko’s figures. Amidst this price fluctuation, Ripple‘s CEO, Brad Garlinghouse, utilized his XRP-linked account (previously known as Twitter) last Friday to dispel misleading and inaccurate media reports concerning a California judge’s ruling in the ongoing class action lawsuit regarding XRP.
XRP Price Analysis: Bears Control May End Soon
Since April 12, XRP‘s price has been consistently lower than both its 50-day and 200-day simple moving averages. On April 20, a bearish signal known as a “death cross” emerged on the XRP price chart, reinforcing this downward trend. Furthermore, during this period, XRP’s price has been forming a symmetrical triangle pattern, which carries an equal likelihood of leading to an upward or downward price movement.
As an analyst, I observed that on June 7, XRP‘s price took a downturn, dipping as low as $0.454. The relative strength index (RSI 14) followed suit, falling beneath its moving average (MA) at 37. With the RSI showing signs of a potential bottoming out, there appears to be limited scope for further declines. Despite these bearish indicators, XRP remains anchored by a significant support level situated around $0.475. The recent price breakout is part of a larger consolidation pattern, with a robust resistance level at $0.57 and a solid support level at $0.46.
Two possible outcomes may transpire: a potential decline toward a lower threshold at approximately $0.429, or a rebound from the current support around $0.57 back up to the upper boundary. In each instance, a recovery is anticipated. Noteworthy resistance levels to keep an eye on include $0.49 and $0.56.
The data obtained from CoinGecko indicates that XRP‘s 24-hour trading volume experienced a significant increase of approximately 58%. Such a surge suggests heightened investor attention towards XRP.
What is Causing the XRP Price Downturn?
Although Ripple secured a victory with Judge Hamilton, the value of XRP has been dropping. Ripple’s CEO, Brad Garlinghouse, believes inaccurate reports from cryptocurrency media outlets could be a significant cause for this downward trend.
I’ve observed an influx of misleading and inaccurate headlines regarding the recent ruling by a California judge in the XRP class action lawsuit. It’s important for us as crypto investors to clarify some facts. (I’m glad to see corrections being made – I encourage everyone to double-check their sources before spreading information.)
— Brad Garlinghouse (@bgarlinghouse) June 21, 2024
Garlinghouse explained on Twitter that the impending trial of a single state law claim involves individuals he referred to as “trolls,” who aim to manipulate the US legal system and exaggerate statements for significant class action settlements. It’s important to note that the plaintiff in this case owned just 200 XRP.
In contrast, large XRP investors, or “crypto whales,” have been purchasing XRP during the recent price decline. Last Friday, Whale Alert, a monitoring service, identified a substantial transfer of XRP from Binance to an unidentified wallet.
Bottom Line
Last week’s decision by Judge Hamilton represented a significant victory for Ripple in its ongoing legal battle with the SEC. However, certain unsettled market factors, such as unidentified large investors, have continued to negatively impact XRP‘s price. Nevertheless, signs of price recovery may emerge in the near future.
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2024-06-24 08:38