Ripple’s blockchain cryptocurrency XRP has been subjected to multiple SEC hearings and impending lawsuits, which are essentially driving the value of XRP down. Technically the currency has breached multiple supports and trendlines, and it headed into a free-fall scenario.
But the good news for XRP’s business is its partnership with Amazon, which intends to use the federated sidechains for creating its own blockchain network.
XRP Technical Analysis
XRP is under a downtrend since the beginning of June 2021 and has been falling from $1 towards $0.65. At the same time, the value was indicative of around the 100-day moving average line designated by the light blue line on the above charts.
After continuously falling under the market conditions, XRP is headed to breach the 200-day moving average, which is considered a strong support line. XRP has even breached all the trend line-based support zones.
It bounced from the 200 days moving average on daily charts, but the selling pressure continues to shake this cryptocurrency. After getting intraday support from the 200-day moving average, XRP has once again breached the 200 days moving average with a fresh low. If it maintains a consolidation below the 200 days moving average, XRP could further fall to the year low of $0.25.
The momentum has inspired by SEC rulings & a lot of buzz around the legality of XRP as a security asset. Even the RSI levels have reached oversold zones for the first time this month. All these factors are cumulatively adding stress to the XRP value.
Strong Resistance: $1.1
Immediate Resistance: 200 DMA at $0.76
Immediate Support: Broken
Strong Support: around $0.42
100 Day Moving Average: $1.02
200 Day Moving Average: $0.76
XRP is a downtrend following a negative trendline. It has broken its immediate and strong support of 200 DMA and has turned the support and resistance. Every time XRP breaks the 200 DMA line, traders will create a selling position, further pushing the value of XRP to lower levels.
We can see a small revival from the lows of 20th June and the following push back acting as a resistance. MACD, on the other hand, is confirming a negative trend or bearish signal. XRP holders can earn a profit in the short term by shorting at these levels or start buying close to the 200 DMA line for a long-term profit. Once the regulators’ lawsuits and other issues are resolved, the prices can revive and attempt a fresh high.
XRP trading on a negative trend is not the worry; the rise in volumes from 20th June has further fueled the downtrend. It won’t be easy to revive investors’ interest in XRP without some substantial development. The current hourly candles form a double shadow, indicating a tussle between buyers and sellers for driving XRP value. As such, it reassures long-term buying at 200 DMA.
RSI on hourly charts is extremely oversold; as histogram shows a value below 30, a trend reversal should happen anytime. Traders should wait for a green candle formation on Heiken Ashi charts to reinvest in XRP.
However, according to the current situation of XRP, investors should think twice before investing in it, and as per our Ripple price prediction, the situation might be the same for somewhile. So it’s better to wait in order to earn huge returns from this cryptocurrency.