Last week ended with bears firmly in control. At the end of it all, the Ripple price is down 37 percent week-to-date, with sellers firmly in charge in the past 24 hours. What’s more? After superb gains of the past five months, the correction may be even more profound in the days ahead.
However, what would arrest sellers in the next few weeks is the determination of the Ripple-SEC court case.
There are positive developments, mostly around legal blips made by SEC lawyers and series of wins for Ripple lawyers. These are supportive of the crypto scene and XRP as a coin that partnering firms are afraid to leverage due to fuzzy classification. If anything, the eventual ruling will provide guidance.
ODL Marketing Efforts
In turn, especially if the courts say the coin is a utility, it would allow Ripple to market the On-Demand Liquidity (ODL) solution aggressively. This is key since ODL uses XRP. Only a few dozen firms utilize the solution.
Unlike legacy remittance channels, ODL relies on the XRPL for instantaneous settlement, cheap transmission costs, and much more.
Accordingly, there is nothing to prevent the XRP coin from rebounding higher if there is demand from a utility perspective.
Ripple Technical Analysis
From the daily chart, XRP is down 37 percent week-to-date, melting below $1 and back to 2018 highs of around $0.85.
As it is, bears are in control.
As visible from the daily chart, every high may provide an unloading opportunity for aggressive traders. XRP/USD is trading in a bear breakout pattern with increasing volumes suggesting cautious participants who are exiting longs and booking profits, accelerating the sell-off.
The first target from the XRP/USD daily chart is $0.40, the March 2021 lows. It is a key reaction point, a launching pad that saw XRP prices blast to over $1.80 in early April.
A double-bar bullish reversal pattern unwinding losses of May 22 may quash bear attempts, forming ground for bulls.
For the nullification of the downtrend to take effect, buyers must reclaim $0.90 and $1 in the immediate term.
Chart Courtesy of Trading View
Disclosure: Opinions Expressed Are Not Investment Advice. Do Your Research.
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