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On Monday 5th June, the crypto market witnessed a sudden sell-off and tumbled several cryptocurrencies lower on an intraday level. The downfall is likely to be associated with the lawsuit filed against Binance, the world’s largest crypto exchange by the Securities and Exchange Commission (SEC). As a result, the XRP price experienced a drawback in its recovery and plunged nearly 6%. Can this negative news hamper the recovery phase in XRP?
Also Read: XRP Lawsuit: US SEC Takes Caution About Bill Hinman Ahead Of June 13
XRP Price Daily Chart:
- A V-shaped recovery in XRP price reflects a strong recovery phase
- A bearish breakdown below $0.486 will intensify the supply pressure and could trigger a minor correction.
- The intraday trading volume in the XRP is $2.06 Billion, indicating a 182% gain.
Source- Tradingview
Outperforming the market leaders Bitcoin and Ethereum, the XRP price showcased a significant recovery in the last three weeks. From the May bottom support of $0.42, the price surged 30% and reached the top of $0.55.
The aforementioned level is an intense supply zone of XRP coin, as it’s turned multiple attempts from buyers to reclaim higher ground over a year. Amid the news of the lawsuit against Binance, the XRP price witnessed another reversal from $0.55.
However, the traders must not consider this reversal as a start of a new correction yet and wait for the support breakdown of $0.486 before opening a new short position.
Will XRP Price Plunge to $0.45?
If the XRP price manages to close above $0.486 despite today’s sell-off, this level will be crucial support for coin holders. If the prices hold above this support in the coming days, the bullish recovery will remain intact and push the coin back to $0.55.
Conversely, a breakdown below $0.486 will indicate the sellers regaining trend control which could tumble the altcoin to the $0.45 mark.
- Vortex indicator: A reducing gap between the VI+(blue) and VI-(orange) slope reflects the loss of bullish momentum in the XRP price.
- Exponential Moving Average: The coin price moving above the daily EMAs(20, 50, 100, and 200) keeps the overall trend sentiment bullish.
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.
