XRP saw a modest 3% price increase today after experiencing a 9% decline over the past week. Despite this brief recovery, the cryptocurrency’s market capitalization has risen by 3.47%, reaching $128 billion, but trading volume has significantly dropped by 25% in the last 24 hours. It remains uncertain whether this price movement marks the end of the current downtrend.
Technical Analysis Points to Bearish Head & Shoulders Pattern
Crypto analyst Hope Theory has raised concerns about a potential decline in XRP’s price, pointing to a Head & Shoulders chart pattern forming on the asset. The pattern, often viewed as a bearish indicator, suggests that XRP may soon experience a substantial drop, possibly reaching as low as $0.50.
“The pattern is STILL VALID & KICKING,” Hope Theory remarked, suggesting that this bearish pattern could soon play out, sending XRP’s price downward.
Resistance and Support Levels in Focus
In recent weeks, XRP has struggled to break past the $2.60 resistance level, facing persistent downward pressure from sellers. The Relative Strength Index (RSI) on the daily chart shows that XRP is currently oversold, which may signal an impending reversal. Despite this, the coin is bouncing off a support level at $2.03, but without significant buying momentum to push through resistance, it could continue its downward trajectory.
Hope Theory, who has accurately predicted past price movements of XRP, has reminded followers of his previous calls, such as advising them to buy under $0.50 and sell at $1 during previous rallies. He also noted his predictions for the 2018 pump and dump, where XRP peaked at $3.30.
With the price action now in question, traders are divided on the future direction of XRP. Some anticipate a potential reversal to the upside, while others are preparing for a further decline.
Ripple’s Ongoing Legal Battle with the SEC Looms Large
A major factor impacting XRP’s price is the ongoing lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The legal proceedings, which have dragged on for an extended period, continue to cast a shadow over XRP’s price action. Should Ripple prevail in the lawsuit, XRP could see a significant price surge. However, if the court ruling does not favor Ripple, it may limit the coin’s potential for growth in the near future.
As uncertainty lingers, XRP traders remain on edge, weighing the technical signals and awaiting further developments in the Ripple-SEC case.
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