- XRP/USD keeps failing at the $0.55 area
- As long as the market holds the higher lows series, the bias remains bullish
- A bullish triangle’s measured move points to $0.8
The cryptocurrency market is in consolidation following the strong rally since the start of the year. For example, Ripple (XRP) rallied against the US dollar in the first four months of the year as it jumped from $0.3 to almost $0.6 following the overall bullish cryptocurrency market trend.
But then, a consolidation followed. Since trading close to the $0.6 level, XRP/USD failed to make a new high for the year. In fact, it was constantly rejected by horizontal resistance.
However, this rejection, while bearish short term, also tells something different. As long as the price action keeps the series of higher lows intact, it builds energy before another try at the resistance level.
In other words, the bias remains bullish for the XRP/USD if the price is above $0.4. If the level holds, XRP/USD may be close to finishing a bullish reversal triangle with a measured move pointing to much higher levels.
Ripple finds support at $0.3
The cryptocurrency market’s bearish trend ended in the last part of 2022. In the case of XRP/USD, one can see a double bottom pattern at the $0.3 level – a bullish reversal pattern.
But that is not the only bullish sign. The fact that the market formed a series of higher highs while failing at horizontal resistance tells us that it is building energy to break higher.
More precisely, the price action resembles a bullish triangle. On a close above $0.6, the market should keep advancing toward the $0.8 area because such a triangle has a measured move equal to the length of its longest segment.
- XRP/USD gave away half of the 2023 gains
- A bearish channel points to more weakness
- $0.3 must hold for bulls to still hope
Cryptocurrency investors were thrilled to find out that the industry bounced strongly in 2023. In the first quarter, all leading cryptocurrencies rallied, led by Bitcoin.
XRP/USD rallied too. It traded as low as $0.3 in the early days of 2023 and almost doubled by the end of the first quarter.
A combination of prolonged dollar weakness and enthusiasm in the crypto universe was responsible for the rally. Also, the Federal Reserve played with the idea of pausing the interest rate hikes as inflation cooled down.
But instead of the dollar weakness continuing, it stopped. Moreover, the trend reversed, and the dollar rallied so far in the second quarter.
And what markets corrected the most? The ones that rallied the most, such as the cryptocurrency market.
XRP/USD in danger of breaking the $0.3 support area
The technical picture looks increasingly worrying for XRP/USD. Despite the Q1 2023 rally, XRP/USD still moves with a bearish tone.
It appears the rally was nothing but a bear market rally, given the bearish channel remained intact. In fact, the market failed right where it was supposed to – at resistance offered by previous support.
Should the market break below the bearish channel (i.e., below $0.3), the projected measured move points to continued weakness toward the $0.2 area. In that case, the bearish channel is nothing but a continuation pattern in a bearish market that started with a double top pattern in late 2021.
All in all, for bulls to still hope, the market must hold inside the channel. Another attempt to the $0.6 resistance area would be desirable, but one should not discount the increased possibility of breaking below $0.3 and the bearish implications of such a move.
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XRP accumulation intensified in the first week of the year
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Investors bank on Ripple’s win against the SEC
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XRP has gained stability above $0.31, and the price could surge from here
If you have been following Ripple (XRP/USD), you already know its case with the SEC continues to be important. Investors have priced XRP depending on the direction of the case. However, the latest CoinShares report shows that institutional investors are banking heavily on a Ripple win.
According to CoinShares, the first week of 2023 saw $3 million in inflows into XRP. On the other hand, investors exited $6.5 million and $3 million from Bitcoin and Ethereum, respectively. This could be positive news as it shows how much trust the market has developed in XRP. According to CoinShares, the inflows reflected improved clarity on Ripple’s case with the SEC. But despite this positive development, XRP-associated investment products recorded $9.7 million worth of outflows.
From a fundamental perspective, we could argue that it is still a double-edged sword for XRP as the case drags on. There are positives to pick from the latest institutional inflow, with the settlement expected in the current first quarter. The technical outlook also supports a potential XRP accumulation of around $0.31.
XRP gains stability above support at $0.31
A price outlook shows XRP is pushing higher after settling and consolidating above $0.31. The momentum has improved but remains weak. The MACD indicator is yet to cross above the neutral zone.
However, the volume indicators would be a little bit exciting. A spike in buy-side volumes suggests that buying is ongoing for XRP above $0.31. The previous bullish pin bar acts as the buffer against the bear pressure for XRP.
Will XRP become bullish?
XRP has a chance to become bullish if the price holds steady at the current level. The upside is likely to continue in the short and medium term to the $0.4 resistance. The ongoing case with the SEC will determine if XRP price sustains the recoveries.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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XRP has stalled for the last 3 weeks
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The price has been tied to the crypto sentiment and case with SEC
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Garlinghouse expects a “breakthrough” in crypto regulation in 2023
Ripple (XRP/USD) trades around $0.33, a level it started for 2023. The cryptocurrency has held the price zone for the past three weeks. Bulls recovered quickly as the price slid to $0.30 on January 2. But still, the upside remains limited. What holds for XRP this year?
Well, much is expected for cryptocurrencies this year after a disastrous 2022. A possible improvement in the macro situation will definitely boost the price, although this looks unlikely in the first quarter. For XRP, Ripple’s case with the US SEC will be an additional factor. While there have been glimpses of Ripple’s success, the crypto community still remains unsettled over the outcome. For Ripple CEO Brad Garlinghouse, 2023 carries some optimism. But as he advises, it needs caution.
Garlinghouse is not new to throwing punches at the US regulator since the case against Ripple started. Taking to Twitter to share views about crypto in 2023, Garlinghouse believes it is time for regulatory clarity on crypto in the US. Without referring to the pending case with the SEC, the Ripple CEO says it is time to define “security” in the digital asset sector. He still believes the US stands a chance if regulations come fast, and 2023 could be the year of a “breakthrough.”
But as the XRP classification case drags on, there is no notable price change as the outlook reflects caution. Still, the latest price action may excite buyers.
XRP stalls above the $0.31 support
A technical outlook shows bulls have successfully defended $0.31 support. An interesting highlight was when a strong bullish pin bar formed as the price slid below the support. The formation of the pin bar underlined that buyers quickly arrested the price drop and stabilised it. However, momentum is weak, with the MACD remaining bearish.
What next for XRP?
XRP price may struggle further, but buyers will be observant if prices approach $0.31. The level is a clear buying zone to watch.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
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XRP price has remained tied to the ongoing Ripple case with SEC
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SEC recently filed a motion to restrict the Hinman documents
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$0.40 is the level to watch on the bull side or $0.30 on the bear side
Ripple (XRP/USD) has been on a short recovery since falling below $0.34. Despite losing an intraday of 3.20% as of press time, it looked stable even as Ripple’s case with SEC drags on.
For a long time, the SEC’s case has been a price driver for XRP. However, recently, investors have adopted a wait-and-see attitude amid speculations that the case was nearing an end. Up to this point, nothing is confirmed yet, but the ongoing legal tussles shape XRP trading.
The latest development in the longstanding case involved the SEC filing a motion to restrict the Hinman documents. SEC lawyers allege that the documents should be protected from the public since they carry sensitive matters. It should be remembered that Ripple has often called for the documents to be made public. If the SEC’s wish is granted, that could be a blow to Ripple.
With XRP continuing to reflect the case, it is obvious that any win for the SEC will hurt the token’s price. Consequently, Ripple will come under bear pressure. Similarly, a win for Ripple would increase speculations of SEC getting defeated at the end and boost XRP. That could see the cryptocurrency resume the uptrend.
XRP trapped by $0.40 resistance but holds strongly above $0.30 support
From the technical outlook, XRP is trading within a range. $0.40 is the resistance at $0.30 is the support. Any break above or below these levels will spell a win for bulls and bears, respectively. Momentum is, however, improving, with the MACD indicator shifting above the signal line. The indicator still shows XRP is bearish.
What next for XRP?
XRP price will be determined by the developments around Ripple’s case with SEC. To a technical reader, it is important to buy the cryptocurrency on a confirmed breakout.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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XRP has been trading at or slightly below the $0.4 resistance
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Gene Hoffman expects SEC to win the case against Ripple
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XRP awaits further triggers for a breakout or drop
Ripple (XRP/USD) is still in waiting mode. The cryptocurrency clings to the $0.4 resistance as if buyers are not sure if to break above. They are, however, relentless in letting bears take the price below this level. Who wins?
Of course, Ripple’s case with the SEC is a dilemma yet to be solved. Despite Ripple making small wins and many believing it will triumph against the regulator, a crypto pundit thinks otherwise. Gene Hoffman, the COO of Chia network blockchain company, expects SEC’s assertion that XRP is a security to hold.
Hoffman says that an excerpt from the summary judgement filing of the SEC supports the view. He says Bill Hinman, its ex-director of corporate finance, informed Ripple in 2019 that XRP was a security. Hoffman says apart from the Hinman statement; the court knows that people bought XRP expecting its value to surge. Consequently, the judge is likely to argue that Ripple’s sales of XRP made the token a security.
In further emphasis, Hoffman says there are no notable differences between the Ripple and LBRY Credits cases. In the latter, the regulator won. He asserts that SEC has never lost a case involving section 5 for a long time.
XRP holds to the $0.4 resistance
From the technical outlook, XRP’s trading depicts a wait-and-see approach. Bulls are holding to the $0.4 resistance hoping that Ripple’s case will go in their favour. That would see a breakout at the crucial level.
On the flip side, bears are also waiting for an opportune moment to crash XRP. That is shown by a shift of the RSI to below the midpoint, implying that bears are increasing at the resistance. It could also signify the exit of bulls at the crucial level.
Which way, XRP?
The next price action for XRP will depend on developments or speculations around the case with SEC. Investors should keep watch of the developments before buying XRP.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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XRP has been trading on a short-term uptrend
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The cryptocurrency is facing pressure at the $0.40 resistance
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Watch for the daily candlestick close for confirmation of a bearish move
Ripple (XRP/USD) looked poised for a breakout at $0.40. The cryptocurrency has been trading on a short-term ascending channel, giving hopes that a breakout was on the horizon. Investors have remained hopeful as Ripple’s case with the SEC enters the final stages. With little cryptocurrency news coming up to reassure XRP buyers, the token is developing weaknesses.
Trading at $0.38 as of press time, XRP had slightly broken below the ascending trendline. The daily candlestick needs to close below the trendline to confirm a bearish momentum that could take XRP back to $0.30. Longtime CNBC host JIM Cramer has, however, commented negatively about XRP.
According to Cramer, most cryptocurrencies are still overvalued. Any bullish enthusiast may discredit the views, given that most tokens are trading sharply low from their all-time highs. However, back in June, Cramer predicted further declines in crypto prices amid calls for sustained gains. The CNBC host claims that XRP, Dogecoin, and Cardano could crash to zero.
While comments by Cramer could be a bit harsh, it is also true that crypto markets are yet to become bullish. XRP has been relying on speculations of case settlement. The lack of a positive catalyst has thus been posing a recovery challenge.
XRP attempts to break below the ascending trendline
From the daily chart outlook, XRP stalled as it hit $0.4. weakness is now developing, with the MACD indicator showing a slowing momentum. Similarly, the RSI has shifted below the midpoint, likely suggesting buyer exhaustion.
What next for XRP?
If XRP price confirms a break below the short-term descending trendline, the bear pressure will heighten. Bears will want to revisit the support at $0.30 unless positive developments in the SEC case pop up.
On the flip side, bulls may attempt to force bears at the resistance, forcing a candlestick close above the trendline. That could prolong consolidation at the resistance for a potential breakout.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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Crypto lawyer expects a sweeping ruling in Ripple case with SEC
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XRP has met resistance at $0.40
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The cryptocurrency is bullish but needs a breakout for further gains
Ripple (XRP/USD) has been trading on short-term bullish momentum but within a tight range. That has seen the cryptocurrency hit resistance at $0.40, a level it has held for a few days. From there, it’s just one more bullish trigger, and XRP will break out. There are developments worth noting that could cause such price action.
As you already know, Ripple’s case with the US Securities and Exchange Commission is entering a crucial stage. CoinJournal reported that lawyers expect the case to be settled very soon. Another crypto legal expert has thrown his views on the case.
Attorney James K. Filan expects the US District court to make a sweeping ruling in a summary judgement. He believes there won’t be separate rulings on the sealing issues, including the Hinman materials. Filan says this is the standard practice from the previous rulings, including a case that involved Goldman Sachs. If the prediction turns out to be accurate, we could see the case settled early on, as speculated.
Meanwhile, the latest Coinbase cryptocurrency news has raised fresh speculations. Coinbase says it will remove some crypto assets, including XRP, from its wallet beginning in January. The US crypto exchange cites low activity of the tokens. The development has made the crypto community speculate that the case with SEC will be delayed or Ripple will be defeated. But how is XRP behaving?
XRP corrects slightly at key resistance
An intraday loss of 2% allows bears to push XRP back to the ascending trendline. The RSI has fallen below the midpoint on the entry of sellers. However, the momentum is still bullish for XRP at the key resistance.
Should you buy XRP?
Most of the expectations about Ripple’s case with the SEC are speculation. However, it is a truth that the case is taking an important twist that will be watched in December. Bulls should stay alert at the $0.40 level, as a potential breakout could occur on positive developments.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Ripple (XRP/USD) trades at $0.35. a decline of 7% in the day. For another time, the cryptocurrency was rejected at the $0.4 resistance. However, it should be remembered that positive developments of the Ripple case with SEC were a significant bull trigger. XRP traded at a high of $0.55 in late September, in line with the case direction. However, as cryptocurrencies soil after the FTX collapse, XRP has not been an exception.
Aside from the general crypto mood, XRP is poised for growth if Ripple triumphs against the regulator. Recently, Ripple made a small win after a court allowed amicus briefs in the case. As of the November 18 deadline, 14 had filed their briefs for Ripple and 1 for SEC. The final arguments in the longstanding case will be presented to the presiding judge towards the end of this month. After that, it would take another 2-6 months to conclude the case. Still, a long way to go before the bulls get a chance to ride on a post-determination rally should Ripple win.
So, what’s at stake now is whether XRP could wither the bear market as investors wait for the outcome. From a technical point of view, XRP has done exemplary well, although it is struggling to make significant gains.
XRP maintains a short-term trendline amid weak momentum
A technical outlook shows XRP trading along the short-term trendline since initiating a recovery slightly above the $30 support. However, the trading pattern should be viewed as largely a consolidation rather than a bullish one.
The RSI remains below the midpoint but shows no oversold conditions for XRP.
Should you buy XRP?
Buyers and sellers of XRP are muscling up between the $0.30 and $0.40 levels. A $0.4 remains a key resistance to watch for a confirmation of bullish momentum.
Alternatively, a break below the short-term trendline could take XRP price back to $0.30. With XRP bulls defending $0.30 since June, it remains the level to watch. A break below $0.30 would confirm a bear market.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Ripple (XRP/USD) is trading for 0.4756 against the dollar. The value represents a 2% drop in the past day and a 5% increase in the last week. Despite the drop in XRP valuation by 2% to $23 billion, the token has registered a 54% increase in daily trading volumes to $1.4 billion.
Part of XRP trading activities could be tied to an increasing whale appetite. A transfer of 100 million XRP tokens worth more than $49 million was recorded three days ago. In addition, the number of XRP investors owning between 1 million and 10 million XRP is rising.
What could be driving whales to add more XRP is the developments in the Ripple – XRP case. Amid the legal tussle, Ripple is attracting support from major industry players. Some of them, including Coinbase and VeriDAO, have applied to be enjoined as friends of the court.
At the same time, the SEC has been faulted for trying to buy time after asking for a timeline extension. The regulator requested more time after several entities joined the case as amicus curiae. The case, projected to conclude in the first quarter of next year, is expected to boost XPR value. However, the daily technical chart shows moments of indecision among the investors.
XRP lack of directional movement to continue?
Source: TradingView
The daily chart above shows a clearly defined consolidation pattern in the price of XRP. The payment cryptocurrency has been locked between a low of $0.4447 and a high of $0.5114. The choppiness has remained in place since the end of September, with the press retracing to the support. Although the MACD indicator shows some bullishness, investors remain indecisive, As shown by a nearly neutral Stochastic Oscillator.
Concluding thought
Although a consolidation pattern often results in a major breakout, either way, none (breakout) is on the horizon. As it stands, investors should remain patient for a clear signal. The fundamentals around the Ripple SEC case are also a key factor in the next likely XRP price action.
Where to buy XRP
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.