A general bearish trend has weighed down the Ripple price after a landmark win by the blockchain company against the US Securities and Exchange Commission last month. This downturn has seen XRP undo all the gains in the rally witnessed after the ruling.
According to data from TradingView and Coingecko, the fifth largest cryptocurrency by market capitalization is trading 44% below the July 13c high at $0.9327, nearly losing all the gains after the court’s decision that granted Ripple Labs a partial win.
At the time of writing, XRP is trading at XRP price is trading with a bearish bias at $0.5193, less than 1% down over the last 24 hours and 14% over the week. The remittance token is weak as overhead pressure from the moving averages threatens to lower the price. What are the key levels to watch on both sides?
XRP Price Prediction – Where Next?
After setting a swing high at $0.9327 on August 13, Ripple embarked on a downtrend that saw it lose key support levels including the major Simple Moving Averages (SMAs). The bulls attempted to push the price above the 200-day SMA at $0.5613, but the bears seem very active near this level.
XRP is now trading below the said level with the $0.50 psychological level forming support on the daily chart. A daily candlestick close below this level would be detrimental for the holders of the cross-border payments token with the first line of defense emerging from the $0.4711 support wall.
Additional lines of support would be found at the $0.45 psychological and the $0.42 central support wall. Eventually, the price could drop to $0.4211, bringing the total losses to 19%.
XRP/USD Daily Chart
Supporting this grim outlook for Ripple were the positions of the oscillating indicators within the negative region. The Moving Average Convergence Divergence (MACD) indicator moved below the zero line. This suggested that the market conditions still favored the bears. The Relative Strength Index (RSI) was facing downward, and its value of 31 suggested that there were still more sellers than buyers in the market who were in full control of the price.
Note that XRP faced stiff resistance in its recovery path. These were regions defined by the 200-day SMA at $0.5613, the 50-day SMA at $0.5890, and the 100-day SMA at $0.6330. Other roadblocks are found at the $0.65 psychological level where the 50% Fibonacci retracement level, the 78.6% retracement level and the $0.80 psychological level.
From the analysis above, it is evident that XRP still faces resistance on the upside. This tends to limit the possibility of a sustained recovery for the token. The upside could be capped at the 200 SMA, just above the $0.50 psychological level.
