The price of XRP has slightly slid below the $0.60 level after a minor upsurge, leading to questions of whether the bulls are preparing for another assault. The latest price performance by XRP was $0.61, only to retrace back as it tested levels of confidence and market support. This move below $0.60 insinuates that XRP faces tremendous resistance at this level, although market signs indicate possible bullish activity in the offing. At press time, XRP was trading at $0.597, a 2.03% decline from the 24 hour high.
XRP/USD (Source: CoinMarketCap)
Following an initial push past $0.60, the cryptocurrency eased slightly and is currently trading a bit lower. Even with this decline, the fact that XRP has been able to recoup losses from earlier slumps is a sign that buyers could soon get back into the market in a bid for a more massive push toward the resistance at $0.64.
Technical Indicators Show Mixed Signals
In the 4-hour chart of XRP price action, consolidation is underway and forming a triangle pattern that suggests another breakout. The recent failure of V-shaped recovery gained no follow-through and failed to hold above $0.62, continuing to pull back toward $0.55, establishing a very strong resistance trendline.
On the bright side, a bullish divergence from the RSI shows that momentum might be building up for an upward move.
Source: TradingView
This would only add to the bullish outlook, with the potential formation of an inverted head and shoulders pattern in the daily chart. Added to this is the golden crossover between the 50 and 200 SMA to signal a possible move that should take its price above $0.64 towards $0.72. The fear that XRP may continue ranging within tight limits until a definitive move comes through has only been raised due to the clear breakout above the current resistance levels lacking.
Legal Developments and Market Sentiment
Legal dynamics around Ripple and the company behind XRP remain heated. The recent resolution of Ripple’s litigation with the United States Securities and Exchange Commission (SEC) is, for the company a huge regulatory win.
These have been perhaps responsible for the renewed interest in XRP, which though dropping to below $0.60, remains cautiously optimistic in overall market sentiment. Most traders believe that the course of XRP will go bullish at any moment.
The court’s decision that XRP is not a security has deflated some of the impetus for worry that’s been hanging over the price of the cryptocurrency. Yet, there is bound to be massive tension going forward since the SEC is most likely going to appeal. Investors will, therefore be keen on the development, which will go a long way toward affecting the price action of XRP in the ensuing weeks.
According to the analysts, XRP’s dip below $0.60 is making it hard for bulls. The subsequent few sessions could see confirmation of a new bullish phase, assuming a breakout over $0.64, with the set-up toward $0.72 or higher in targets. Otherwise, continued struggle under $0.60 means traders must wait for further signals before seeking long opportunities.
