Over the last 24 hours, XRP holders have been surprised by fundamentally positive news. The Ripple foundation will claim that the SEC had failed to inform that XRP could potentially violate U.S. law.
Accordingly, the SEC’s actions to strike Ripple’s fair affirmative defense are denied. The following analysis aims to speculate the price reaction to this news.
Technical Analysis by Grizzly
The Daily Chart
Ripple (XRP) was one of the Altcoins to form higher lows after the crypto market started its consolidation phase in January 2022.
Despite yesterday’s news that pushed prices over 10%, one should be skeptical considering the market’s high volatility and the failing major supports that now are turned into resistance levels.
Initially, XRP failed to break above its dynamic resistance (marked by blue on the following chart). Next, the static resistance at $0.9-1, which has intersections with the 200-day line, has become a significant barrier for XRP.
On the other hand, the demand zones at $0.7 and $0.6 can be considered as areas where the price has the potential to find strong support in the near term.
The 4-Hour Chart
Following yesterday’s news, the price broke out of the symmetrical triangle and is now forming a pullback pattern. This can be seen on the following 4-hour timeframe,
If the macro won’t disturb the overall cryptocurrency markets, there is a possibility of re-testing the static zone at $0.85. This short-term positive momentum is sustained by the MACD indicator reaching the bullish area.
The Bottom Line
With the recent events favoring Ripple, it seems the FOMO of buyers fueled a 10% latest daily increase. That being said, given the current uncertainty in the markets, short-term speculators should be cautious about getting in. Any sudden fluctuation in the Bitcoin market can change everything, especially when the trading volume is near multi-month lows.
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Cryptocurrency charts by TradingView.
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