Back to the square one

Nearly a month ago, federal judge Analisa Torres ruled in favor of Ripple Labs in its case against the U.S. Securities and Exchange Commission. The decision was quickly followed by bullish price action, and XRP rose almost to $1, with many investors claiming this to be only a beginning of a roaring bull market. However, fast forward to today, and XRP still has not managed to break the $1 mark. Instead, the token lost more than a third of its value following the initial spike right after the judge’s ruling. Furthermore, as if it was not enough, the SEC signaled this week that it would appeal the ruling, setting a step back for the victory. As a result, we think this might put a lid on the XRP’s price and lead to increased volatility, with the prospect of XRP falling lower as another round of legal battle drags on.

Illustration 1.01

Illustration 1.01 shows the daily chart of MACD that is approaching the midpoint. If it breaks below it, it will be bearish for XRP in the short term.

Technical analysis
Daily time frame = Slightly bearish
Weekly time frame = Bullish

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Comment:

The daily chart is growing bearish as XRPUSD fell below the 50-day SMA and MACD crossed below the midpoint. In addition to that, RSI and Stochastic turned bearish. Now, we are paying close attention to the immediate support. If it is broken to the downside, then it will further bolster a bearish case in the short term. Growing market dominance of Bitcoin represents a threat to altcoins.

Comment:

XRPUSD fell to $0.43 before rebounding back to $0.50 overnight.

Comment:

XRPUSD will likely test $0.43 again as the pick-up in volume suggests increasing selling pressure.