Ripple (XRP) has encountered a significant price decline, primarily linked to Bitcoin’s (BTC) sharp drop earlier this week. XRP’s price action has formed a notable technical pattern, breaking downward from a symmetrical triangle on June 7. This pattern suggests a bearish market sentiment, and XRP is now trading below key moving averages, facing a crucial resistance level.
Key Support and Resistance Levels
The price of XRP recently found support at the $0.45 level but has since retested the lower trend line of the symmetrical triangle, moving further downward. Currently trading below the 50-day and 200-day simple moving averages (SMA), XRP faces resistance at the $0.5 mark. The token is at a critical juncture, with the chart indicating a possible double bottom formation, yet other market structures hint at further downside risk.
Potential Price Movements
If XRP forms a double bottom, it could see a 14% rally, pushing the price to $0.54. Conversely, if it breaks current support, the price might drop to $0.42 before rebounding. The monthly chart suggests an extremely bullish scenario, with the potential for XRP to rise to $700, contingent largely on the outcome of Ripple’s ongoing legal battle with the SEC.
Actionable Insights
Key takeaways for market participants:
- Watch for a double bottom formation as it could signal a 14% rally to $0.54.
- Be cautious if support at $0.45 breaks, indicating a possible fall to $0.42.
- Monitor Ripple’s SEC case outcome, which could significantly influence XRP’s long-term price.
Bitcoin also faced a sharp decline below $60,000 earlier this week, causing market panic. However, bulls quickly regained control, pushing BTC back above this critical support level. Despite this recovery, BTC remains below its 50-day SMA, with the relative strength index (RSI) just above oversold territory. The 200-day SMA continues to provide strong support at the $60,000 mark.
Ripple and the SEC have until July 8 to review their motion to seal documents, potentially setting the stage for a significant settlement process. Technical analysis expert MekaMark predicts a substantial increase for XRP, estimating a 100X to 300X value rise over the next 24 months. If Ripple prevails in its case against the SEC, XRP could reach a price range of $30-32.