The price recently invalidated a break of support at USD 0.66, but it could drop to USD 0.41 in the short term. The scenario is bearish for XRP, as the price crosses the 8-day EMA and 18-day SMA to the downside.
The still-ongoing lawsuit against Ripple Labs has placed some bearish pressure on the price of XRP. However, there are rumors in the community that the end of the legal process could be approaching.
One of the lawyers covering the trial against Ripple said that people hope the case could conclude this year. They expect that to happen between August 26th and November 18th, but it could be sooner.
The price of XRP seems to know that the end of the lawsuit is still a few months away. Proof of that is a behavior of low determination tilted towards sellers.
XRP is trading at around USD 0.73 and has accumulated a 4.1% loss over the last week. Its daily trading volume is above USD 3.92 billion, and its market capitalization is about USD 35.36 billion. It occupies 7th place in the cryptocurrency ranking, according to CoinGecko.
It is relevant to recall that the SEC prosecuted Ripple Labs for selling unregistered securities for USD 1,300 million. That situation caused the prices of XRP to drop due to the pessimistic sentiment among its users.
Monthly Technical Analysis about the Price of XRP
The monthly XRP/USDT chart shows that the price has moved sideways but slightly downwards over the last few months.
The price crosses the 8-month EMA and 18-month SMA, which work as dynamic supports. Despite an attempt to break through those indicators, buying pressure has prevented losses from extending too far.
The price recently invalidated the break of support at USD 0.66 in an attempt to resist the turbulence. However, the continued increasingly low lows indicate that it can go lower in the short term. The closest support level shown by the monthly chart is at USD 0.41.
Given that the dominant long-term force remains bullish, the selling space could be about to run out. It seems a matter of time before the bulls take control of the XRP market.
The Next Crucial Levels for XRP in the Short Term
The daily XRP chart shows a bearish scenario for the crypto asset. The price crosses the 8-day EMA and 18-day SMA to the downside. Besides, those indicators work as dynamic resistances, following the short-term downward trend.
Right now, the probabilities of the cryptocurrency tilt towards sellers. If the price lost the support at USD 0.69, the way would be open for selling up to USD 0.59.
The recent rejection of low prices indicates that a significant rally could take place next. However, there will be no confirmation unless the price breaks through the resistance at USD 0.78.
Many people hope that the trial against the RippleLabs association will end soon for the price to resume the bullish trend. In that way, the rise in the price of XRP would bring profits to those investing in it.
By Alexander Salazar