- XRP price is showing multiple bearish indicators, including the rising wedge and the descending parallel channel, since June 22.
- Ripple could see a maximum projection of a 17% decline from the current price.
- The bearish outlook could be voided if positive sentiment emerges from the impending deposition in the SEC lawsuit.
XRP price has printed two bearish chart patterns consecutively, suggesting Ripple could face further decline. The blockchain firm has made progress in the lawsuit filed by the US Securities & Exchange Commission (SEC) after the judge in the case approved of the company’s questioning of a former agency official, William Hinman.
XRP price could see a 17% decline
XRP price has generated a rising wedge pattern prior to posting a descending parallel channel shortly after on the daily chart.
While Ripple has attempted to break above the rising wedge, XRP price failed to break above the aforementioned pattern’s lower boundary, which led to the subsequent consolidation pattern.
The expected target of the rising wedge pattern is measured to be a 26% decline from the breakout, which would see XRP price drop to $0.49.
Adding credence to the bearish bias, another target for XRP price is given from the declining price range. By drawing another parallel channel directly underneath, Ripple projects a 17% drop from the current price, reaching a low of $0.48.
XRP/USDT daily chart
Investors should take note of the impending death cross, where the 50-day Simple Moving Average (SMA) slices below the 200-day SMA, which could further heighten the selling pressure of Ripple.
However, the aforementioned XRP price targets would only be in effect if Ripple loses the 78.6% Fibonacci retracement level at $0.55 at support and falling further into the demand zone, which extends from $0.50 to $0.55.
XRP price could potentially have another play in store, given the progress that it has made in the SEC case. Willian Hinman, a former agency official, is scheduled for a deposition on July 27. He will face questioning by the blockchain firm of his previous statement that indicates Ethereum is not a security.
If XRP price is able to leverage on the positive sentiment, Ripple could reverse the period of underperformance, but resistance is heavy on its way to recovery.
XRP price could target the 50% Fibonacci retracement level at $0.62 if selling pressure subsides. Until then, Ripple could continue to move sideways.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.