Over the past 24 hour, XRP holder have been pleasantly surprised by fundamentally good news. Ripple will claim that the SEC failed inform XRP holders that XRP could possibly violate U.S. Law.
Accordingly, the SEC’s actions to strike Ripple’s fair affirmative defense are denied. The following analysis attempts to speculate on the price reaction to this announcement.
Technical Analysis by Grizzly
The Daily Chart
Ripple, (XRP), was among the Altcoins which reached higher lows following the crypto market’s consolidation phase that began in January 2022.
Despite yesterday’s news that pushed prices over 10%, one should be skeptical considering the market’s high volatility and the failing major supports that now are turned into resistance levels.
Initialy, XRP failed above its dynamic resistance (marked in blue on the chart below). Next, XRP has faced significant resistance from the $0.9-1 static resistance, which intersects with the 200 day line.
However, the demand areas at $0.7 and $0.6 could be considered as areas in which the price can find support in the near future.
The 4-Hour Chart
Following yesterday’s news, the price broke out of the symmetrical triangle and is now forming a pullback pattern. The following four-hour timeframe will show this.
If the macro won’t disturb the overall cryptocurrency markets, there is a possibility of re-testing the static zone at $0.85. The MACD indicator reaching bullish territory sustains this short-term positive momentum.
The Bottom Line
Ripple’s recent developments have driven a 10% daily increase. Short-term speculators need to be cautious with their investments due to uncertainty in the markets. A sudden change in the Bitcoin market could cause everything to fall apart, especially if the volume of trading is at its lowest point for several months.