The digital asset space continues to move within the red zones as cryptos fail to retake their previous positions. XRP had a hard time recording gains around December last year. While other assets grew in value, the coin declined drastically as the firm faced legal battles. The US regulator for crypto service providers and exchanges sued Ripple executive for deliberately not registering XRP as a security.
The fintech firm fired back and argued that Bitcoin and Ethereum both operate similarly as XRP, but the regulatory body had not mandated their registration as a security. Before the price correction occurred, XRP started seeing more notable gains as retail holders could earn more than they expected. Still, the price correction didn’t give the asset enough time to build a strong support system as it loses its vital support.
XRP loses vital support
Charts show that the coin declined from its previous $0.5 mark to $0.44, showing value loss since the asset took the $0.51 level, which is now a strong resistance point. The asset’s key levels are both the resistance and the support. The asset’s resistance holds around $0.65, $0.70, and $0.75. On the other hand, the support level is around $0.30, $0.25, and $0.20.
The asset’s inability to move above the $0.5 mark shows that value is not substantial, hence the support level’s loss. The crypto is at s point whereby it needs pressure to stabilize and restart the bull runs.
Since the price correction started, bears have been very active working in the market towards dragging the asset below its support level, leading to value losses. Buyers can explore the price drops by allowing the bears to drag down the price for cheaper purchases. Investors of XRP should hold their assets and not attempt to sell the crypto to avoid an unwanted pride crash.
Some analysis shows that if traders continue pressuring the market with their rapid sell-offs, it could lead to price weakness, thereby taking the asset below the lower boundary. The development would cause the price to fall within the $0.40 and $0.35 initial supports.
More vital support holds around the $0.25 mark, which would lead to a drastic price loss. Unfortunately, XRP is looking quite bearish as its MAs are layered.
Crypto moves below moving averages
The crypto can start run another rally if it manages to move above the 9-day and 21-day moving averages. It’s safe to note that the technical indicator, RSI (14), is seen below 50-level, showing that there might be more push from market bears. The asset has to move beyond $0.50 to surge to an even higher level while hitting the resistance around the $0.65 mark and above.
Market bulls have to cooperate towards taking the price beyond its present mark by regaining dominance. Buyers should also increase their buying pressure to assist the weakened value, which struggles with the intense selling pressure from investors that want to secure their crypto holdings. Still, XRP has potentials as the market structure would allow more gains in the future.
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