- XRP’s price has dropped more than 3% over the last 24 hours.
- The 24-hour price drop caused XRP to lose the key support level at $0.3748.
- Technical indicators suggest that XRP’s price may continue to drop in the next 24-48 hours.
Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. It was first released in 2012 and was co-founded by Chris Larsen and Jed McCaleb.
Ripple’s main process is a payment settlement asset exchange and remittance system, similar to the SWIFT system for international money and security transfers, which is used by banks and financial middlemen dealing across currencies.
The token used for the cryptocurrency is premined and utilizes the ticker symbol XRP. Ripple is the name of the company and the network, and XRP is the cryptocurrency token. The purpose of XRP is to serve as an intermediate mechanism of exchange between two currencies or networks – as a sort of temporary settlement layer.
Ripple is still involved in its multi-year-long lawsuit with the Securities and Exchange Commission (SEC).
Recently, however, Ripple’s chief legal officer Stuart Alderoty published a post, in which he dropped a hint that Ripple may move the SEC case to the U.S. Supreme Court should the current judge take the side of the SEC. Alderoty tweeted that the regulator has already lost four of its last five cases in the Supreme Court.
XRP Current Market Standing
XRP (XRP) is ranked as the sixth biggest crypto by market cap, according to CoinMarketCap. It experienced a 3.10% drop in price in the last 24 hours taking its price down to $0.3672 at press time. This also puts its total market cap at approximately $18.707 billion at press time.
The 24-hour drop in XRP’s price has added to its negative weekly performance. As a result, the price of XRP is down 5.31% over the last 7 days at press time.
XRP Technical Overview
4-hour chart for XRP/USDT (Source: TradingView)
XRP’s price dropped below the key support level at around $0.3748 in the early hours of this morning shortly after dropping below the 9 and 20 EMA lines on its 4-hour chart. The break below this key support level caused the remittance token’s price to briefly plummet toward the next support level of $0.3525.
Fortunately, XRP’s price was able to recover from the level and close the 4-hour candle at $0.3645. It opened the current 4-hour candle at $0.3665, but bears re-introduced themselves and have been applying sell pressure ever since – pushing XRP’s price down in the process.
The break below the crucial support level at $0.3748 triggered a bearish flag between the 9 and 20 EMA lines on XRP’s 4-hour chart, with the 9 EMA line crossing below the 20 EMA line over the last 8-12 hours. In addition to this bearish flag, the 9 and 20 EMA lines on XRP’s 4-hour chart are currently acting as resistance for the remittance token’s price.
The RSI line on XRP’s 4-hour chart has also nosedived below the RSI SMA line on XRP’s 4-hour chart over the last 24 hours. This has resulted in the RSI line dipping into oversold territory. The RSI line has, however, rebounded from the level and is sloped positively towards overbought territory at press time.
Daily chart for XRP/USDT (Source: TradingView)
The altcoin’s price also dropped below the 9-day and 20-day EMA lines after it tried to sustain a position above the 9-day EMA line. Unfortunately, XRP’s price was unable to do so. This failed attempt at remaining above the 9-day EMA line subsequently resulted in the price drop experienced in the last 24 hours.
Similar to the 4-hour chart, the 9 and 20 EMA lines on XRP’s daily chart are acting as resistance for the altcoin’s price. Furthermore, since dropping below the aforementioned key support level, XRP’s price has been unable to recover back above the 9-day EMA line.
This suggests that XRP’s price may continue to fall in the next 24-48 hours. This bearish thesis is supported by the fact that the daily RSI lines remain sloped toward the oversold territory at press time. Furthermore, the RSI line is also positioned below the RSI SMA line.
Bears have set their downside target for XRP’s price at the next support level at $0.3525 as indicated by the wick above the current 4-hour candle.
This bearish thesis will be invalidated if XRP’s price is able to break above the 9-day EMA line by the end of today’s trading session. Should this happen, XRP’s price will consolidate at around the key price level of $0.3748.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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