- The XRP price struggles with the resistance level of $ 0.50, which coincides with the meeting of several technical hurdles.
- A rejection at this level increases the likelihood of a 45% drop in Ripple market value.
- The potential correction could be reduced by $ 0.42 by the 50 hour MA.
It’s an understatement to say that XRP price was affected by the SEC’s fees on Ripple. In fact, the remittance token has suffered a liquidity shortage as many cryptocurrency exchanges have suspended it for trading. While some market participants have done everything in their power to push it higher, this altcoin appears poised for another downturn.
To update: Ripple’s XRP is defying gravity starting Wednesday, trading above $ 0.53, up over 11%. The token has seen increased volatility as it is in the spotlight for right and wrong reasons. Regulatory problems arise above price, as do some technical aspects of price. On the other hand, XRP is benefiting from the growing interest in cryptocurrencies that is emerging from Elon Musk’s venture in Bitcoin. Tesla, founded by Musk, announced that it is investing $ 1.5 billion in the forefather of cryptocurrencies and can also accept BTC payments under certain conditions. Ripple’s offering looks promising for transactions as well, and some investors may be looking to bet on XRP – seeing it as the next digital coin to gain greater adoption in the real economy. More: Elrond may offer a buying opportunity.
XRP could be overrun with bears soon
XRP price has developed a bear flag on its 4-hour chart. Since this is viewed as a continuation pattern, the height of the flagpole suggests that this altcoin could fall 45%.
Still, this bearish scenario is not set in stone.
The $ 0.50 resistance level is crucial in determining where the XRP price is going next. This hurdle is balanced by the 50% Fibonacci retracement level and the sell signal of the SuperTrend. So getting around it won’t be an easy task.
An increase in selling pressure around this level could be significant enough to push the XRP price down to $ 0.42. Here the 50-hour MA coincides with the Fibonacci value of 38.2%, adding an extra layer of support.
However, if that level is exceeded for any reason, the XRP price can drop to $ 0.22.
XRP / USDT 4-hour chart
Regardless of the pessimistic outlook, a spike in buying pressure resulting in a 4-hour candlestick near the station’s upper trendline at $ 0.53 could put XRP price on greener pastures. Crossing the resistance opens up the possibility of a 20% rise to $ 0.60.