In the past 48 hours, the price of XRP has seen remarkable volatility and has fallen below USD 0.50. The crypto market is heavily focused on XRP due to a recent favorable development in the Securities and Exchange Commission (SEC) vs. Ripple lawsuit.
The emergence of the Hinman documents has led to investigations into the actions of the Securities and Exchange Commission. While XRP saw positive price action earlier this year, the altcoin has faced challenges due to ongoing market volatility. This has led to a break below significant support levels.
In the past 24 hours, XRP has seen a drop of almost 7%. There has been an 8% depreciation on the weekly chart. Both demand and accumulation of the asset have remained low. This indicated a dominant bearish trend. The fear index remains high in the market, contributing to a drop in investor confidence.
Failure to cross the $0.50 level could result in a significant loss of value for XRP during the next trading session. In addition, the fall in the altcoin’s market cap reinforces the weak purchasing power reflected on the chart.
XRP Price Analysis: One Day Chart
At the time of writing, the altcoin XRP was trading at USD 0.47. After the bulls’ rejection at $0.50, XRP has been on a downtrend.
The coin encountered resistance at $0.50 and is expected to encounter even stronger resistance at $0.55. If the altcoin fails to cross the USD 0.55 mark, it is likely to drop towards its local USD 0.46 support level and possibly further towards USD 0.43.
In addition, the altcoin has formed a bearish double-top pattern, indicating a possible price trend reversal as it moves down the chart. XRP’s trading volume has also fallen in the last session, suggesting that sellers have taken control of the asset.
Technical analysis
For most of this month, XRP witnessed a decline in demand. This was reflected by the Relative Strength Index (RSI) falling below the half line, indicating that sellers had taken control of the asset.
In addition, XRP fell below the 20-Simple Moving Average (SMA), indicating low demand and indicating that sellers were driving the price momentum in the market.
However, if the altcoin trades near the $0.50 price, it could potentially push the price back above the 20-SMA line. This would essentially indicate a resurgence in demand for the asset.
In addition to the mentioned technical indicators, other signals on the chart for the altcoin point to selling pressure. The Moving Average Convergence Divergence (MACD) formed red histograms, signaling sell signals for the altcoin and indicating bearish sentiment in the market.
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In addition, the Bollinger Bands have widened, indicating greater volatility and potential price swings for the altcoin in the coming trading sessions. This suggests that the price of XRP may experience significant changes and unpredictability in the near term.
Featured image from UnSplash, charts from TradingView.com
