• XRP price tussles with the $0.50 resistance level, which coincides with a confluence of multiple technical hurdles.
  • Rejection at this level increases the odds for a 45% drop in Ripple’s market value.
  • The potential correction could be cut short by the 50 four-hour MA around $0.42.

It is an understatement to say that XRP price has been affected by the SEC’s charges on Ripple. Indeed, the remittance token has suffered a liquidity shortage as many cryptocurrency exchanges suspended it for trading. While some market participants have done everything in their power to push it upwards, this altcoin seems primed for another downswing. 

Update: Ripple's XRP is defying gravity as of Wednesday – trading above $0.53, an increase of over 11%. The token has been experiencing elevated volatility as it remains in the spotlight for right and wrong reasons alike. Regulatory issues loom over its price and so do some technical aspects of its price. On the other hand, XRP benefits from the growing interest in cryptocurrencies stemming from Elon Musk's venture in Bitcoin. Tesla, founded by Musk announced it is investing $1.5 billion in the granddaddy of cryptocurrencies and may also accept BTC payments under some conditions. Ripple's offering is also promising for transactions, and some investors may be trying to jump on XRP – seeing it as the next digital coin to gain more substantial adoption in the real economy. More: Elrond may provide a buying opportunity.

XRP could be overrun by bears soon

XRP price has developed a bear flag on its 4-hour chart. Since this is considered a continuation pattern, the flag pole’s height suggests this altcoin could drop by 45%. 

Nonetheless, this bearish scenario isn’t set in stone. 

The $0.50 resistance level is crucial in determining where XRP price is headed next. This hurdle is made up by the 50% Fibonacci retracement level and the SuperTrend’s sell signal. Thus, moving past it will not be an easy task.

A spike in selling pressure around this level might be significant enough to push the XRP price to $0.42. Here, the 50 four-hour MA coincides with the 38.2% Fibonacci level, adding an extra layer of support. 

But If this level is breached for any reasons, then XRP price may drop to $0.22.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

Regardless of the pessimistic outlook, an increase in buying pressure that leads to a 4-hour candlestick close above the channel’s upper trendline at $0.53 might see XRP price head to greener pastures. Slicing through resistance will open the possibility for a 20% surge to $0.60. 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin news

Why you should capitalize on this 60% upswing in Solana price

Why you should capitalize on this 60% upswing in Solana price

Solana price shows an interesting divergence on the high time frame chart that could kick-start a much needed swing rally. Therefore, investors need to pay close attention to SOL.

More Solana news

ApeCoin continues to fall as bears aim for $5.00

ApeCoin continues to fall as bears aim for $5.00

ApeCoin exhibits full bearish control. A drop towards the $5.00 target is a high probability occurrence in the near future. ApeCoin price is still following the macro technicals forecasting a $2.00 target. Invalidation of the bearish thesis is a breach above $13.50.

More ApeCoin news

Why Binance Coin price could wipe out all gains made this month

Why Binance Coin price could wipe out all gains made this month

Binance Coin price could be setting up for a plummet back to $217. Binance Coin price has breached the ascending parallel channel to start this Friday's trading session. This week, it was mentioned that the future for BNB price was highly dependent on the directional breakout from the channel.

More Binance Coin news

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP