XRP Price Surges on Legal Win, Faces 65% Fall: What’s Next?
XRP's price is experiencing a decline after a significant surge earlier this week. This surge was a result of a favorable court ruling in the lawsuit against the US Securities and Exchange Commission (SEC) in favor of Ripple, the company behind XRP.
The court ruling clarified that XRP sales are not considered securities, leading to increased investor interest in the cryptocurrency as a global money remittance token. Many investors hoped for a rally to push the price above $1 and even reach the previous all-time high of $3.40 in January 2018.
After breaking out from a sideways trading range between $0.45 and $0.55, the price reached as high as $0.93, a level not seen since December 2021. However, it later retraced to find support around $0.7.
The XRP price is facing a potential further decline, as it dropped 5% on Friday to trade at $0.7785. The Moving Average Convergence Divergence (MACD) indicator suggests a strengthening bearish trend, with the second sell signal in a week.
The Money Flow Index (MFI) shows that sellers currently have the upper hand, potentially pushing XRP to realign with other major cryptocurrencies like Bitcoin and Ethereum, which have been range-bound since early June.
A consolidation phase is expected between the support at $0.7 and the resistance at $0.8. The 50-day Exponential Moving Average (EMA) is positioned to alleviate selling pressure at $0.73 and support the primary support level at $0.7.
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Cointelegraph’s fractal analysis warns of a possible 65% decline in XRP price by September, citing factors such as an overbought Relative Strength Index (RSI) and a multiyear descending trendline resistance. The descending trendline resistance has been capping the XRP price uptrend since 2018, while a horizontal resistance line around $0.93 adds further complications.
Considering these resistance levels and the overbought RSI, XRP’s price may undergo a market correction, potentially targeting support at $0.52 by September, indicating a 40% drop from its current market value.
Despite this potential decline, XRP remains one of the best-performing cryptocurrencies in July, with a 57% increase in value over the past 30 days.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
