Ripple (XRP) made a rapid recovery at the end of the week. Will Ripple, however, turn bullish in the short term?
On the graphic, XRP can be seen cascading downward. The current support zone is established at $0.33(R5.30), which has aided in skewing the price decrease.
Now, in order to stay afloat, the bulls must hold Ripple’s price above this level. Ripple (XRP) will tend to climb above the static resistance line, notably at $0.55(R8.83), and subsequently to $0.68(R10.92) if done successfully.
The cryptocurrency is currently trading at $0.430831(R6.92) on Coingecko, down 16% in the last seven days.
Positive Response in the SEC vs. Ripple Case
Sunday was a wonderful day for Ripple, as it gained 5.07 % after gaining 0.92 % on Saturday. However, XRP finished the week on a sour note, falling by 21% to $0.4475(R7.19). Despite the encouraging response to Ripple’s court statement in the SEC v. Ripple case on Friday, XRP was down.
Ripple evidently filed a response to the SEC last week with respect to William Hinman’s 2018 speech. Hinman, the former SEC Director of the Division of Corporation Finance, is the major or crucial figure in the SEC-Ripple legal struggle.
Hinman stated in his 2018 address that Bitcoin and Ethereum are not securities. The SEC is now attempting to conceal emails and other documents, such as Hinman’s declaration or speech, as well as any private or internal conversations that could be used as evidence.
Is There a Reversal Ripple?
Many indicators indicate that Ripple is oversold, implying that it may resume its upward trend in the near term. To justify that reversal, the price must now overshoot to a higher high and then to a higher low. To generate bullish momentum, the price should be pulled to $0.65(R10.44).
Furthermore, the pattern can be labelled bullish if Ripple manages to reach a higher high directly above the resistance zone. However, its last ascending wave appears to be feeble, implying that a retest is possible. Furthermore, the resistance zone passes through an Ichimoku cloud, making it extremely tough for the bulls to navigate.
Ripple’s price has reached the green zone three times in the last year, indicating weaker support. If the negative trend continues, demand will most certainly struggle to match supply, especially if support is retested.