XRP price performance in the last few weeks has trimmed a massive chunk of the gains accrued following the Ripple ruling in early July. From highs around $0.93, the cross-border money remittance token is struggling to secure support at $0.60 and prevent potentially paralyzing losses to $0.5 and $0.4.
Despite the partial ruling, which the court delivered through Judge Analisa Torres, determining that XRP sales conducted by third-party exchanges are not securities as opposed to those made directly to institutional investors, XRP price did not make it to $1, squashing the hope of an anticipated major rally to the all-time high of $3.40.
With the Securities and Exchange Commission (SEC) set to file an “interlocutory appeal” of the ruling – announced on Wednesday, the XRP market situation could complicate further and possibly curtail the run-up to $1.
The regulator will be appealing a part of the court’s decision in the Ripple ruling while leaving the rest of the lawsuit for trial.
The XRP Price Breakout In the Offing?
Despite the impending appeal, XRP price appears to be nurturing a falling wedge pattern breakout on the daily chart.
Implying that the downtrend is at the tail end and a trend reversal is beckoning, the falling wedge comprises two descending trendlines, connecting a series of lower highs and lower lows.
A break above the upper trendline around $0.65 validates the wedge hinting at a breakout equal to the height of the pattern.
Traders seeking new exposure to XRP longs may want to wait until the price rebounds from immediate support in line with the 50-day Exponential Moving Average (EMA) (red) at $0.6261.
The Moving Average Convergence Divergence (MACD) indicator must subsequently flip bullish to ascertain the validity of the uptrend. Such a call would exhibit with the MACD line in blue crossing above the signal line in red.
Buy orders activated above $0.65 may target initial profit at $0.7, which brings $0.85 within reach. Extremely bullish traders could decide to hold tight until XRP price tackles resistance at $1.
Fundamentally, the XRP dominance has rolled back to retest a key trendline based on a chart shared on X, formerly Twitter by crypto analyst JD. If the dominance bounces off the trendline, investors can look forward to a rally toward $1.
However, in case it is a fakeout, losses may gain momentum below $0.60 and toward $0.5 and $0.4, respectively.
#XRP Dominance 2-week chart! We are retesting the green trendline! Will we bounce off trendline, or will this be considered a Fakeout?😱😵
Retweet/Like for the 2-week close this weekend for $XRP Dominance chart minus ALL NEWS/NARRATIVES! Bouncing off trendline would be BULLISH! pic.twitter.com/bjRgRAD96b
— JD 🇵🇭 (@jaydee_757) August 9, 2023
Meanwhile, XRP price is testing the daily point of control (dPOC) at $0.6344 after a rejection from the daily open (dOpen) at $0.6433. If the overhead pressure intensifies, losses may extend to the weekly open (wOpen) at $0.6234, without ruling out the possibility of a sharp drop to the week’s POC (wPOC) at $0.5974.
The resumption of the uptrend depends on the bulls’ ability to push XRP price beyond the dOpen at $0.6433 – a move likely to open the door for gains to monthly POC (mPOC) at $0.6763 and subsequently the hurdles at $0.7, 0.85 and $1.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
