XRP price has managed to make a quick rebound, will it go bullish, at least for the short term?
XRP price attempted a quick recovery over the weekend. Is Ripple’s native token bullish, at least in the short term? At the time of writing, it is changing hands at $0.4266.
XRP/USD 4-hour chart | Source: TradingView
XRP price struggles to breach $0.45, down 16% in the last 7 days
On the chart, XRP is said to be descending. The current support area is located at $0.33, which has helped correct the downside. Now, to stay alive, the bulls should manage to keep the price of Ripple above this level. On successful execution, XRP will tend to move above the static resistance line; namely $0.55, and then move to $0.68.
XRP ended last week on a sour note as it dropped 21% to $0.475. XRP fell despite the positive voter turnout when Ripple filed a court filing on Friday following the SEC lawsuit against Ripple.
Ripple sent a reply last week to the SEC regarding William Hinman’s speech made in 2018. Hinman, ex-SEC Director of the Division of Corporation Finance, is the main or pivotal figure in this legal battle between SEC and Ripple.
During Hinman’s 2018 speech, he mentioned that Bitcoin and Ethereum are not securities. The SEC is currently trying to cover up emails and other documents such as Hinman’s statements or speeches and other private or internal discussions that could be used as evidence.
Many indicators show that XRP is oversold, which means it could boost the short-term uptrend. To confirm that reversal, the price must break through the higher high and fall to the lower low. The price should be pulled to the $0.65 price level to create a bullish impetus.
Alternatively, this structure could be bullish if Ripple tries to reach higher levels above the resistance area. However, its last ascending wave looks weak, which means a retest is likely. Furthermore, the resistance zone also passes through an Ichimoku cloud, making it difficult for the bulls to breakthrough.
As the price of XRP has tripled in the green zone over the past year, it can now be seen as weaker support. Now, if the downtrend turns down, demand will most likely struggle to meet supply, especially with another retest of support.
Read more:
- Ripple Response To SEC Assertions That The Hinman Documents Were Protected By Attorney-Client Privilege
- Here’s Why XRP-Focused Investment Products Had Less Than $0.5 Million In Inflows