XRP price has started to give back part of the gains it has accrued this week. The token, native to Ripple’s payment system, exploded spectacularly following last week’s ruling which favored Ripple in the lawsuit against the US Securities and Exchange Commission (SEC).
The judge ruled that XRP sales, especially on exchanges are not securities, a decision that saw investors rush to seek exposure to the international money remittance token with the hope of a rally ensuing, possibly above $1 and toward the all-time high of $3.40 in January 2018.
Following the initial breakout from 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 affirm support at $0.7.
In the previous analysis, XRP price had regained the ground above $0.8 but resistance at $0.85 curtailed the renewed bullish momentum. Now, XRP is facing a potentially massive retracement as it trades at $0.7785, down 5% on Friday.
What’s Next As XRP Price Abandons $1-Bound Rally
The Moving Average Convergence Divergence (MACD) has reaffirmed the strengthening bearish grip, flashing the second sell signal in a week. Shorts traders depending on this momentum indicator look out for bearish crosses, which manifest with the MACD line in blue flipping below the signal line in red.
The Money Flow Index (MFI), an indicator that measures the volume of money flowing into and out of XRP markets, shows that sellers have the upper hand. If investors continue with this rout, XRP may realign with its peers – Bitcoin and Ethereum, which have generally been range-bound since the breakout in early June.
A consolidation period will likely ensue between the support at $0.7 and the resistance at $0.8. The 50-day Exponential Moving Average (EMA) (in red) is in line to dampen the selling pressure at $0.73 and reduce pressure on the primary support at $0.7.
XRP Price Fractal Risks 65% Breakdown – Cointelegraph
According to a fractal analysis carried out by Cointelegraph, XRP price could be at risk of a massive 65% decline by September. Some of the cues the analysts considered are the overbought Relative Strength Index (RSI) and “the multiyear descending trendline resistance.”
The XRP price uptrend has since 2018 been capped under the descending trendline resistance. On top of this, a horizontal resistance line around $0.93 complicates the situation further for the four-largest crypto.
Considering the resistance lines and the overbought RSI, XRP price may be heading into a market correction, targeting support at $0.52 by September, implying a 40% drop from the current market value.
The 50-week EMA (red) reinforces support at $0.52 which could result in a bounce. The same support played a crucial role in the XRP 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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