The price of the native token of the XRP Ledger, in which Ripple is a major ecosystem player, has kept on struggling over the last few months, to the point it lost 11.6% of its value in the past 30 days and 24% of it over the last six months. In a week, it lost an additional 4%.
The cryptocurrency is struggling to get back above the $0.5 mark and is now at $0.47 per token amid the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC) and the broader bearish sentiment gripping the cryptocurrency market.
Market analysts point to the unresolved SEC case as a major overhang on XRP, as the uncertainty surrounding the lawsuit’s outcome has dampened investor enthusiasm, hindering any significant price rallies. Only recently was XRP relisted on major cryptocurrency exchanges after Ripple secured a major victory in the legal battle.
Adding to XRP’s woes is the current market environment as there was a recent drawdown in the cryptocurrency space that saw Bitcoin, the flagship cryptocurrency, plunge to a $58,000 low before it started recovering, moving back to $61,500 at the time of writing.
Data from on-chain analytics firm Santiment shows that investors are realizing losses on their XRP holdings as it trades below the $0.5 mark, suggesting capitulation, at a time in which both XRP and ADA are being targeted by short sellers.
XRP Price Analysis
Technical analysis of XRP’s price chart shows that the cryptocurrency’s price on the yearly chart is currently below its simple moving averages for 50 and 200 periods, suggesting there’s bearish sentiment in both the short and long term.
The cryptocurrency’s 50 SMA line is currently at $0.524 while its 200 SMA line is at $0.543. Its Relative Strength Index (RSI) is currently at 38 and appears to be moving into oversold territory as it trends downward, suggesting there’s potential for a bounce ounce it hits that level.
XRPUSD Chart via TradingView
Meanwhile XRP’s Moving Average Convergence Divergence (MACD) has its line below the signal line, indicating bearish momentum that’s confirmed by its histogram, although the latter is moving closer to zero indicating the momentum is weak.
XRP’s resistance levels are currently around its moving averages and the psychological $0.50 level, while support is sitting at $0.465 and at around $0.4 after the cryptocurrency hit a recent low at that level.
Featured image via Unsplash.
