Following its victory against the US Securities and Exchange Commission (SEC), Ripple ($XRP) pricing exhibits a lack of buying pressure. The payment processing network has been on a downward trend ever since. Given where Ripple is at the moment, a further decrease would not be unexpected.
A graphic showing the current valuation of $XRP and potential future deviation was provided by EGRAG CRYPTO. If the token closes above the Fib 0.5 level at 0.57C, the Twitter analyst predicts that it will increase to as high as $1.40.
Investors remain wary as there might be a further decline in the price of $XRP given the numerous unfavourable on-chain data. After converting the $0.541 resistance level into a support floor, the remittance token is currently trading at $0.507 per token.
Ripple 5-day chart. Pic Credit: Trading View
If the buyers don’t act, the price might drop by 19% to the next important support level at $0.407.
However, if the $XRP price turns the $0.541 resistance level into a support zone, the bearish argument will be disproven. In this scenario, the price of XRP can attempt a 23% rally to reach the crucial mark at $0.665.
Given that its relative strength index has remained at 30 during the past month, there maybe some optimism for Ripple buyers as the RSI has gradually climbed to 50 and appears as though it may easily move higher.
Additionally, $XRP’s 30-day moving average has stabilised after more than a week of declining below its 200-day average, suggesting that the coin has bottomed out and that buyers are prepared to benefit from its reduced price.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
