XRP price, down 6.9% in the last seven days, is trading at $0.69 on Tuesday. The crypto market is generally bearish, led by Bitcoin price’s 2.2% drop in the last 24 hours. On the other hand, XRP continues to give back the gains, with investors realizing that the run-up to $1 may take longer than they expected.
XRP Price Rolling Back – Time To Lock In The Gains?
After bulls failed to sustain the uptrend triggered by the ruling in the long-standing legal battle pitting Ripple against the US Securities and Exchange Commission (SEC) two weeks ago, XRP price sustained a trend reversal from resistance at $0.85 to the ongoing sell-off below $0.7.
If bulls do rally behind the cross-border money remittance token and reclaim the immediate $0.7 resistance, there is a glaring possibility that losses could stretch to $0.6, thus bringing $0.5 within reach.
The XRP price technical outlook on the daily chart implies that sellers have the upper hand, especially with the Moving Average Convergence Divergence (MACD) indicator flashing a sell signal.
To trade this momentum indicator, traders generally look out for bearish crosses marked by the MACD line in blue crossing below the signal line in red. As the index drops toward the mean line and possibly into the negative region, it assures investors that the downtrend will persist.
This downtrend has already been reinforced by the Relative Strength Index (RSI), which is dropping fast from the overbought and heading to the midline with the possibility of returning to the oversold region below 30.
Bulls have a chance to arrest the sell-off and regain the ground above $0.7. However, if the XRP price closes the day below the same level, $0.6 could be the next rendezvous point for shorts traders.
On the bright side, such as s drop might be a blessing in disguise, allowing sidelined investors to gain exposure to lower-priced XRP tokens. The 50-day EMA, holding slightly below $0.6 would play a crucial role in dampening the bearish situation to create an environment suitable for a $1-bound rally.
Ripple-SEC Ruling Could Spark Uncertainty In Crypto
Many experts and stakeholders, including leading investment banks like the Bank of America (BAC), have been weighing on the Ripple vs SEC lawsuit ruling, with many expressing concerns over the uncertainty it is likely to brew within the crypto industry.
Based on a CoinDesk report, the BAC has called for a comprehensive regulatory framework to provide oversight of the crypto market to foster mainstream adoption and attract institutional investors.
According to the bank, the ruling in the SEC-Ripple case did not clear the regulatory concerns in the industry. Agencies will have to guide the distinction between blockchain-based digital assets and tokenized assets which may encompass things like ETFs and gold.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.