XRP price trap careless bulls before crashing to $0.28 as Ripple's legal trouble continues

XRP price attempts a lethargic recovery to $0.340 or $0.352 as buyers are nowhere to be found.
A move into this level will trigger an 18% crash to $0.286 to collect the sell-side liquidity.
A daily candlestick close above the $0.381 hurdle will invalidate the bearish thesis for Ripple.

XRP price shows no signs of a quick recovery, unlike other altcoins that have undone the recent crash. If and when the bounce does occur, there are also firm hurdles ahead that will likely trigger another sell-off in Ripple price, pushing it lower. While the techncials spell trouble for the altcoin, the legal battle between the SEC and Ripple seems to be ongoing without a conclusion since December 2020.

The most recent development includes Ripple Labs General Counsel Stu Alderoty, who has taken to Wall Street Journal to express his views on what the SEC has been doing. Alderoty states that the SEC's actions have not helped investors but have left them holding the bag. He also adds the SEC considers itself "the cop on the beat” for crypto.

XRP price steadily climbs higher for a reversal

XRP price shows a lack of buying pressure that has kept it under a crucial resistance level at $0.340, while many altcoins have exploded. For now, if the buyers do step in, the likely level where the remittance token could form a local top is $0.340.

If buyers successfully push above this level and flip it into a support floor, then XRP price could extend its run-up to $0.360. This resistance level is crucial and is likely to induce a lot of selling pressure, keeping Ripple bulls under control.

A rejection here could trigger the next leg of the crash that could knock XRP price to $0.286. In some cases, this nosedive might occur after a brief wick to the $0.381 blockade.

XRP/USDT 12-hour chart

Regardless of the lack of bullish momentum, if XRP price manages to flip the $0.381 hurdle – which has prevented the altcoin from moving higher for more than three months – it will indicate a resurgence of buyers.

This development will further invalidate the bearish thesis and indicate the start of an uptrend. In such a case, RP price might revisit the $0.439 barrier.

Share: Cryptos feed

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.