The price of XRP fell this week after a significant increase earlier. The reason for the price surge was a favorable ruling by the court in the case against the U.S. Securities and Exchange Commission (SEC), benefiting XRP’s parent company Ripple.
The court ruling clarified that the sale of XRP is not considered a security, leading to increased interest from investors in cryptocurrency as a global remittance token. Many investors hope this rebound will push the price above $1, even reaching the historical high of $3.40 in January 2018.
After breaking through the trading range of $0.45 to $0.55, the price reached $0.93, a level not seen since January 2021. The price then fell, finding support near $0.70.
The price of XRP faces potential further decline, dropping 5% on Friday to a trading price of $0.7785. The MACD indicator shows that the bearish trend is strengthening, marking the second sell signal in a week.
The MFI index indicates that sellers currently have the upper hand, which could push XRP to reposition against other major cryptocurrencies like Bitcoin and Ethereum, a trend that began in early June.
Expected consolidation phase between support at $0.70 and resistance at $0.80. The 50-day moving average will alleviate selling pressure at $0.73 and support the critical support level at $0.70.
Fractal analysis by Cointelegraph warns that by July, the XRP price could drop by 65%, citing factors such as overbought RSI and resistance from multi-year downtrend lines.
The resistance from the downtrend line has limited the upward trend of XRP price since 2018, while the resistance level near $0.93 adds further complexity.
Given these resistance levels and overbought RSI, the price of XRP may undergo a market adjustment, potentially reaching support at $0.52, a 40% drop from the current market value.
Despite this potential decline, XRP remains one of the best-performing cryptocurrencies in May, with a value increase of 57% in the past 30 days.
