Despite XRP‘s solid fundamentals, its price continues to disappoint investors with a persistent downward trend. On June 11, Bitcoin’s price fell below $66,000, initiating a red day for most crypto assets. XRP experienced a 5.3% decline during this period but has since recovered some losses. CoinGecko data shows that XRP’s price was around $0.4811 on June 12, marking an 8.3% decline over the past seven days during European trading hours.
What Awaits XRP?
Following Bitcoin’s gradual decline from June 6, XRP and other cryptocurrencies saw red days. The XRP price pulled back after its initial drop from the February-March rally peak and entered a consolidation phase that formed a symmetrical triangle. These chart patterns have an equal chance of breaking either way and are greatly influenced by market sentiment and fundamentals.
XRP’s relative strength index (RSI) has dropped to 32, suggesting it is nearing oversold levels. A drop below 30 could signal a price reversal. The bearish sentiment resulting from Bitcoin’s decline caused the chart pattern to resolve downward, dragging XRP’s price to $0.47. If bearish momentum continues, the price could fall to $0.36, with significant support around $0.42.
Conversely, in a bullish scenario, XRP price could meet resistance around $0.55. Surpassing this level could propel the asset to $0.75. Although Bitcoin’s price dropped on June 11, it is currently stabilizing around $67,000. Positive news from the June 12 FOMC meeting could shift the crypto market’s trajectory upward.
Bill on the Agenda
A new bill accepted by the Senate committee could impact cryptocurrencies, including Bitcoin and XRP. The bill mandates crypto-based companies to conduct KYC on their users or face sanctions. This provision aims to accelerate the imposition of sanctions on crypto companies linked to users supporting illegal activities. Given the frequent use of Bitcoin and cryptocurrencies as ransom tools by hackers, this bill could have significant long-term implications.
Key Takeaways for Investors
- XRP is nearing oversold levels according to its RSI, potentially signaling a price reversal.
- Key support for XRP lies around $0.42, while potential resistance is at $0.55.
- The crypto market’s direction could change with positive outcomes from the June 12 FOMC meeting.
- A new Senate bill could affect crypto companies’ operations, emphasizing KYC requirements.
In summary, despite strong fundamentals, XRP is facing a tough market. Its future direction will depend on both market sentiment and regulatory developments.