XRP price drops 11% in a week following SEC appeal on a federal ruling.
Technical indicators suggest continued bearish trend.
Price targets: potential rise to $0.63 if bullish, or drop to $0.480 if bearish trend persists.
Rippleâs XRP finds itself navigating turbulent waters following the Securities and Exchange Commissionâs (SEC) appeal against a federal ruling that had previously classified XRP tokens as non-security assets.
This legal development has dealt a major blow to the cryptocurrency, effectively erasing its gains from the previous month and resetting the stage for the ongoing Ripple vs SEC legal battle.
The recent price action has cast doubt on XRPâs ability to reach the coveted $1 mark by year-end, a target that once seemed within reach. Investors now grapple with uncertainties surrounding XRPâs future trajectory, questioning its potential for recovery and sustained growth.
XRPâs performance paints a dull picture
Despite a modest uptick in the past 24 hours, XRPâs broader performance paints a sobering picture. The cryptocurrency has experienced a substantial 11% decline over the past week.
Technical analysis reveals a descending channel pattern that has constrained XRPâs price action since July. While the token briefly broke out of this pattern, it faced strong rejection at the $0.630 resistance level, triggering a sharp bearish pullback.
The 50-day and 200-day Exponential Moving Averages (EMAs) further reinforce the bearish trend, with a potential âDeath Crossâ formation looming on the horizon.
The Moving Average Convergence Divergence (MACD) indicator adds to the bearish narrative, showing a significant increase in its red histogram. The convergence of MACD averages suggests continued downward pressure on XRPâs price in the near term.
Looking ahead, XRPâs price trajectory hinges on its ability to overcome key resistance levels. A resurgence of bullish momentum could propel the token towards the $0.56 resistance, with further upside potential to $0.63 if positive sentiment intensifies. Conversely, should bearish forces maintain their grip, XRP risks retesting its crucial support trendline at $0.480.
