Ripple (XRP) was the focus of the crypto market on Wednesday as market participants waited for the unsealing of the now famous Hinman documents in the ongoing case between Ripple Labs and the US Securities and Exchange Commission (SEC).
Traders expected the event to have a bullish impact on the XRP price. They were disappointed as the price of the remittance’s token took a bearish turn after investors found out that there was no “bombshell” in the SEC documents that could significantly turn things in favor of Ripple in the case.
Ripple Price Turns Down Hopeful Traders
XRP price fell as much as 9% on Wednesday after intense selling set it on a downward path, a few moments following the release of the Hinman documents. The cryptocurrency fell toward the $0.45 support level, before recovering slightly to the current price at $0.4774. XRP is still trading in the red, down 6.73% on the day and 8.69% over the last seven days, according to data from CoinMarketCap.
From a technical standpoint, the international payments token is facing further declines in the short term.
This is validated by the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators. RSI fell into the negative region, below the midline marked at 50.0. The price strength at 43 suggests that the bears have begun taking control of the price.
This is attributed to the broader market bearishness, which also led to the MACD experiencing a bearish crossover. The MACD (blue) crossing below the signal line (red) on June 14, along with the appearance of red bars on the histogram, suggest bearish conditions for XRP.
Therefore, if the XRP price was to decline, it would find multiple opportunities to bounce back from support levels at $0.47 and $0.45, embraced by the 100-day EMA, the 200-day EMA and the ascending trendline. The latter acts as critical support, and falling below it could push XRP first toward $0.42 and later to March lows around the $0.35 demand zone.
XRP/USD Daily Chart
However, if the trend flips and Ripple begins to recover, it might take a while to find solid footing since the market is still volatile. Critical resistance for the altcoin is marked at $0.48, where the50-day EMA currently sits and later $0,57, which is also the 2023 high. To achieve this, a 15% rally would be required. Once this resistance is flipped into a support level, the bearish thesis would be invalidated.
