XRP price has started a downward spiral as soon as Judge Torres officially denied the SEC’s latest motion to finalize a settlement with Ripple labs. The denial is a legal setback for Ripple and has brought in negative sentiment among traders and investors for XRP causing a high possibility of a further crash down the road.
It seems that many had already anticipated the uncertainty as XRP price had already displayed consolidated price action this week. With the negative news breaking out strong bearish pullback has already started today as a sell-off was potentially triggered.
Moreover, with the fear looming over investors, many have entered into a FOMO-like situation. By evaluating the market conditions, will XRP token make a comeback this week or a crash to its lower support trend levels imminent?
XRP Price Records A Strong Bearish Reversal!
With a sudden drop in the bullish pressure, the XRP price has broken down its flag pattern today, highlighting a significant rise in the selling pressure. Notably, it formed a flag pattern around the 22nd of June and was trading within it until the late Asian trading hours today.
The Volume indicator records increased price volatility over the past few days as the histogram has displayed a sudden spike after recording a consolidated trend between 13th and 22nd June. This shows a rise in the buying-and-selling pressure for XRP price in the market.
The Stochastic RSI is a key indicator used by investors to determine the market sentiment more accurately. In this chart, both the averages have now plunged below the oversold (20) range in the 4H time frame. This suggests an increase in the selling pressure for the altcoin in the crypto market.
On the other hand, the Moving Average Convergence Divergence (MACD) shows a rising red histogram with its 12 & 26-day averages witnessing a bearish convergence. Considering the present market conditions, the XRP coin price could test its lower support levels before recording a potential bullish reversal.
How Low Will XRP Price Go?
A sustained bearish action may result in it retesting its pivotal support of $2.08 soon. Moreover, if the negative influence increases, the XRP token could plunge toward its lower support level of $2 within the upcoming hours.
In an extreme bearish situation, the XRP coin could break down its support of $2 and crash toward its crucial low of $1.91.
However, with a bullish reversal, the XRP crypto price could retest its immediate resistance trend level of $2.15. Furthermore, increasing bullish action may push the price toward its upper test level of $2.23 this week.
Also Read: BREAKING: Judge Torres Rejects Ripple SEC Motion for Indicative Ruing
