XRP Price Update and Technical Analysis 📈📉
- According to CoinMarketCap, XRP has experienced a 1.70% price drop in the last 24 hours. Technical indicators on the 4-hour XRP chart suggested that its price would return to the support level at $0.4614.
- XRP may soon see a breakthrough as a wedge pattern has formed on its daily chart. This pattern indicates a potential shift in price direction.
- Matt Hamilton, former Director of Developer Relations at Ripple, expressed concerns about the ongoing case against Ripple following the recent discovery of internal emails by the Securities and Exchange Commission (SEC). He noted that the regulator’s stance based on the available information appears unfavorable.
However, Hamilton cautioned that the final outcome may not meet expectations due to the complexities of the US regulatory system.
Despite Ripple’s potentially strong arguments, there remains a chance that the SEC could succeed in the legal proceedings. As the case unfolds, stakeholders and digital asset enthusiasts eagerly await further developments. The ultimate classification of XRP will significantly impact the future of the industry and shape the regulatory framework surrounding digital assets.
Current Market Position of XRP
According to CoinMarketCap, XRP (XRP) ranks sixth among the largest cryptocurrencies by market capitalization. Over the past 24 hours, its price has dropped by 1.70%, bringing its current price to $0.4624 at the time of publication. This decrease has also led to an approximate total market capitalization of $23.987 billion for XRP.
Additionally, XRP has weakened against both crypto market leaders Bitcoin (BTC) and Ethereum (ETH) over the past 24 hours. At the time of publication, XRP has decreased by 0.72% against BTC and 1.34% against ETH. Consequently, 1 XRP was valued at 0.00001723 BTC and 0.0002556 ETH.
The 24-hour price decline of XRP has undermined its positive weekly momentum, resulting in a weekly gain of 8.04% for the remittance token.
Technical Overview of XRP
4-hour XRP/USDT Chart (Source: TradingView)
The price of XRP attempted to break above the resistance level at $0.4716 over the weekend and succeeded a few times. However, these successful attempts were short-lived as the price failed to close a 4-hour candle above the key level.
The third and final unsuccessful attempt late on Saturday led to a trend reversal, causing the XRP price to drop from a high of $0.4719 on Saturday evening to a low of $0.4496 earlier today. During this time, the price also flipped the support level at $0.4614 into resistance. In the past 4 hours, the XRP price managed to reach $0.4674 but has since retraced to its price at the time of publication.
However, technical indicators on the 4-hour XRP chart suggest that the altcoin’s price could reclaim the aforementioned $0.4614 level as support. The 9 EMA (Exponential Moving Average) line was trading bullishly above the 20 EMA line, and the gap between the two EMA lines was widening. Additionally, the RSI (Relative Strength Index) line on the 4-hour chart was sharply inclined towards the overbought zone, indicating another bullish sign.
All these technical indications suggest that bulls have intervened to revive XRP’s price. If these bullish flags confirm, the XRP price will continue to flip $0.4614 into support and likely attempt to challenge the $0.4716 resistance again. Confirmation of this bullish thesis would be the RSI line on the 4-hour chart crossing above the RSI SMA (Simple Moving Average) line.
On the other hand, if the XRP price fails to close today’s trading session above $0.4614, it risks falling to the next support level at $0.4499. Confirmation of this bearish thesis would be the 9 EMA line on the 4-hour chart crossing below the 20 EMA line on the 4-hour chart.
Daily XRP/USDT Chart (Source: TradingView)
In the short-term perspective, XRP may experience a breakthrough considering the wedge pattern formed on its daily chart. At the time of publication, there was no confirmation of the direction of the breakout. However, several technical flags on the daily XRP chart hinted at a potential bullish breakout.
The XRP price traded above both the 9-day EMA and 20-day EMA lines and was closer to the upper level of the wedge pattern. In addition, the 9-day EMA line recently crossed above the bullish 20-day EMA line. Lastly, the daily RSI line had a bullish slope towards the overbought zone and traded above the RSI SMA line.
It may take 2 to 4 days for the anticipated breakout on the daily XRP chart to unfold, unless the XRP price breaks out of the wedge pattern before that. If it is a bullish breakout, the cryptocurrency’s price is likely to rise towards $0.5325. Conversely, a bearish breakout could lead to a short-term price drop to $0.36.
