- XRP price is on a downtrend, with no potential trend reversal signs in sight.
- Investors can expect the remittance token to trigger a 26% correction after a minor liquidity run to the upside.
- Invalidation of the bearish outlook will occur if Ripple bulls manage to flip the $0.532 hurdle into a support floor.
XRP price has been dull after the SEC vs. Ripple lawsuit details were ironed out. Since the July 13 verdict announcement, the altcoin has shed 50% to where it currently trades – $0.478. This price decline is expected to continue in the short term, with technical indicators pointing to an extended correction for the remittance token if it fails to overcome a key hurdle.
Also read: Gary Gensler is a hammer and everything looks like a nail: Ripple CEO Brad Garlinghouse
XRP price lacks momentum
XRP price saw a massive uptick in buying pressure after the SEC vs. Ripple lawsuit’s decision was announced on July 13. Since then, Ripple bulls have done nothing but flee, which has caused the altcoin to shed 50% of its value.
Currently, XRP price trades at $0.478, with the Relative Strength Index (RSI) scraping the oversold region at 30. The last two lows for RSI have produced a higher low, while Awesome Oscillator’s (AO) histogram below the zero line is receding, suggesting an increase in bullish momentum.
In contrast with the XRP price, this uptick in bullishness could trigger a recovery rally. However, the presence of the $0.519 and $0.532 hurdles is likely to limit the bounce from the current position to just 12%.
Rejection at these key levels is more than likely considering that these barriers have been relevant since March 2021. A spike in selling pressure, perhaps combined with bearish moves from Bitcoin price, could cause XRP price to crash up to 26% from these resistance barriers and tag the next key support levels at $0.409 and $0.392.
XRP/USDT 1-day chart
While the outlook for XRP price is bearish, investors need to pay attention to any daily candlestick close above the $0.532 hurdle. If this barrier is successfully flipped into a support floor that absorbs profit-taking from holders, it would invalidate the bearish thesis.
Such a development could push the remittance token up by 15% to tag the $0.595 hurdle.
Also read: US ‘the only country’s crypto startups should avoid, says Ripple CEO
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.