XRP’s recent gains might not be for the long-term as the digital asset drop to $0.54, linked to current price falls in the digital asset industry. While some suspect that the crypto space would soon see a breakout, others believe that the asset would stay long in the red zone. This period is not suitable for Ripple, which had just started recovering from the continuous drops it had experienced early this year.
While Ripple still faces issues from its ongoing lawsuit, the legal battle would likely no longer affect its price as XRP holders globally have shown interest in igniting a price growth for the cross-border payment token. Charts show that a bull run is inevitable for the industry, especially after the weeks-long declines that caused sell-offs and increasing selling pressure.
Ripple’s drop from $0.55 point
The asset had grown by over 8% recently, making the crypto move from its previous position to over $0.55. The heavy price gain might have caused the price drop as cryptos are known to have price drops after a continuous gain. This might be Ripple’s position, but nothing is certain till it goes into a bull market. The asset’s key resistance is around $0.62,$ 0.64, and $0.66, while the support holds at around $0.47, $0.45, and $0.43. The crypto is presently vulnerable, and more falls at this point could start another reign of lows.
As of press time, XRPs are trading around 0.54, after a 0.80% fall from the previous day. Even with this slight fall, it’s good to know that the coin has retained some gains from the previous day. The asset had reached a daily peak of $0.58 around that time, and that position had taken the crypto above the upper boundary of the chart.
The asset is currently above the 9-day and 21-day moving averages, which would surely assure long-term investors that Ripple has more potential for growth. Ripple’s failure to hold its recent momentum caused the fall from the $0.58 high, and no one can predict the asset’s next movement due to the market’s condition.
Support failed to hold the asset
The moving averages were supposed to be the crypto support to take the $0.60 point, but this did not happen as the point failed to hold the crypto up. This could be because of the ever-growing selling pressure that affects the whole industry. Still, it’s safe to note that buyers dominate the current market, and that would likely attract bulls.
If bullish momentum returns to the market, there would likely be rapid price gains as the asset move above notable points. The asset’s position is healthy, which means any factor could push the crypto’s next price to the $0.60 mark. The technical indicator, RSI (14), is presently around the 60-level, showing that bulls are present and dominant in the market.
The asset fell immediately it attained the $0.58 daily high, which shows that the crypto lacks enough strength to maintain a bull run. For XRP to successfully take another point, buyers have to continue their activities, which will asset the crypto.