XRP price dipped to $0.56 on Friday as market selling pressure accelerated from geopolitical tension in the Middle East. This three-day decline is now testing the $0.54 support level, which has held for the past two weeks. Will a potential breakdown lead to a major correction, or could an anticipated settlement in the Ripple vs. SEC case spur a recovery for this altcoin?

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XRP Price Poised to Break 2-Week Consolidation

Over the past two weeks, XRP price has oscillated between $0.637 and $0.54, indicating a consolidation phase. The daily chart displays alternating green and red candles with rejection wicks on both sides, suggesting an equal struggle between buyers and sellers.

Interestingly, this consolidation occurs below the resistance trendline of a triangle pattern—a setup marked by two converging trendlines that has dictated the sideways movement of XRP since September 2021. The declining trendline acts as a significant barrier, fostering a prevailing sentiment to sell on rallies in the market.

Additionally, the formation of lower highs on the Relative Strength Index (RSI) aligns with an ongoing distribution phase. Currently, XRP trades at $0.562, experiencing a 5.7% intraday drop with a market cap of $31.27 billion.

On July 31, the SEC canceled its August 1 Closed Meeting, dampening investor hopes for a potential settlement in the ongoing SEC vs. Ripple case.

If the selling continues, XRP price might breach the $0.54 support, turning it into a resistance level, indicative of mounting selling pressure. Should this breakdown occur, the price could decline by 15%, targeting the next support at $0.458 and possibly extending to $0.4.

XRP/USDT – 1D Chart

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Conversely, if buyers manage to uphold the $0.54 support, bolstered by the convergence of the 50-day and 200-day Exponential Moving Averages, a potential golden crossover could rejuvenate buying interest

Such a bullish shift could propel the asset by 14% to rechallenge the triangle pattern’s resistance at $0.64. A breakout from this resistance could significantly signal a trend reversal, potentially pushing XRP to the $1 mark.

Market participants are now focused on the upcoming settlement date on August 8, which could have a major impact on XRP price trajectory if it concludes this extended legal dispute.

The post Distribution Trend Flags XRP Price Falling to $0.4: Is Decline Imminent? appeared first on CoinGape.

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Filed under: News - @ August 2, 2024 5:08 pm