After a protracted decline, Ripple's (XRP) price has found some little support around $0.5250. Over the previous week, XRP price has fallen from $0.67 to a low of $0.51, a 24% loss, despite the minor rebound.
Increased geopolitical concerns, such as the continuing Israel-Iran conflict and the SEC's continued attempts to appeal a prior decision that fined Ripple $125 million, are major factors in this precipitous fall.
Crypto markets are calming down in the midst of all this volatility; key altcoins like XRP have seen partial recoveries, while Bitcoin has held onto its $62,000 support.
The present slump in XRP's price may be transitory, according to market experts like EGRAG, who draw parallels between the cryptocurrency's present pattern with Nvidia's prior price behavior. In the next months, the value of XRP might be driven higher by increased usage of Ripple's technology and possible legal remedies, which could spark a robust rebound.
Possible Reversal of XRP Price Decline in the Wake of Geopolitical Tensions and SEC Appeal?
As a result of geopolitical tensions and the US SEC's fresh appeal against Ripple, XRP's value has plummeted, falling from $0.67 to $0.51, a reduction of 24%. Since September 30, the price has fallen 19%, reaching a one-month low of $0.53.
Analyst EGRAG is still bullish on XRP, comparing it to Nvidia's previous rebound, despite the slump.
He says that the $0.50 support level is important for purchasers since a return there might set off a 14% increase. More selling pressure may push XRP prices as low as $0.45 or $0.40 if they drop below this support.
Main Ideas:
The XRP price has dropped by a significant 24% as a result of regulatory and geopolitical concerns.
There is a significant support level at $0.50, which might lead to a 14% comeback.
The downside risk is that XRP might drop to $0.45 or even lower if it breaks below $0.50.
The Future of XRP is Shaken by Max Keiser's Criticism and the SEC's Appeal
However, veteran financial writer and outspoken Bitcoin enthusiast Max Keiser recently tweeted his disapproval of XRP investors, stating that the likelihood of an XRP surge is quite low.
An adviser to El Salvador's president Nayib Bukele since Bitcoin was accepted as the country's official currency, Keiser uploaded a brief video of a baby crow attempting to grab a worm but failing miserably. That rally is never going to happen, he told the XRP holders loud and plain.
In light of the U.S. SEC's decision to appeal a judge's verdict in its lawsuit against Ripple, the blockchain startup is now embroiled in legal proceedings, which Keiser has commented on. A sharp decline in XRP's price was precipitated by this news.
Although the SEC has not yet specified which particular points it is appealing, Ripple's CEO Brad Garlinghouse has voiced his unhappiness with the situation and said that the firm would persist in its legal struggle. With the latest court-ordered penalties of $125 million, Ripple has already spent over $200 million battling the SEC.
There is pessimism about XRP due to Max Keiser's scathing comments and the SEC's continuing legal battles. His comments, together with the uncertainties surrounding the SEC appeal, have the potential to significantly undermine investor confidence and limit the price movement of XRP.
On the 4-hour chart, XRP is forming a symmetrical triangle, suggesting that the digital asset is now in an indecisive phase. However, a breakout from this pattern is likely to occur soon.
The present pivot point is at $0.5267, and $0.5161 is the next support level. If this level is broken, additional losses may follow, with $0.5070 and $0.4987 as potential targets for support.
At $0.5394, XRP encounters strong upward resistance. The cryptocurrency may be propelled higher, with targets at $0.5542 and $0.5651, if it manages to break over this barrier.
The barrier at $0.5394 is being reinforced by the 50-day Exponential Moving Average (EMA) at $0.5352, which is functioning as a dynamic resistance.
With an RSI of 52, we can see that momentum is going in a neutral direction. Nonetheless, XRP seems to be in a perfect position for a possible breakout based on the symmetrical triangle pattern. A positive trend reversal may occur if the price settles decisively above $0.5394, but a bearish extension may be initiated if the price drops below $0.5267.
Traders should keep a careful eye on these important levels because when the symmetrical triangle pattern breaks out, prices tend to move sharply.
Major Takeaways:
There is a possibility of a sudden change in XRP's price since the cryptocurrency is now trading within a symmetrical triangle.
Watch for a bullish breakthrough at the immediate resistance level of $0.5394.
At the support levels, XRP might go as high as $0.5070 or even $0.4987 if it breaks below $0.5161.
Final Thoughts: XRP is now at a crossroads; a price decline below $0.5161 might hasten negative tendencies, while a price rise over $0.5394 would signal bullish momentum.