XRP Price Rally Awaits the Proper Party Event In NYC.

XRP Price Rally Awaits the Proper Party Event In NYC.

XRP price is in the middle of reversing gains it accrued last week after bulls ran into resistance at $0.51. The uptrend although brief, started after the cross-border money remittance token tapped $0.488 – the same support area that was instrumental in stopping the major correction from the yearly high of $0.93.

With four consecutive four-hour bearish candles, XRP price barely holds above $0.5. This level is critical for the resumption of the uptrend and, therefore, must be defended at all costs.

Signs of vulnerability below this level could further destabilize XRP to the extent of calling on sellers to trigger new short positions.

Losses below $0.5 would become apparent if the weak buy signal from the Moving Average Convergence Divergence (MACD) indicator flips bearish. A bearish cross manifests with the blue MACD line flipping below the red signal line.

The first pit stop and profit booking target for XRP shorts is the short-term support at $0.488. It would be too premature to rule out further losses, first to $0.44 and if overhead pressure persists, XRP may retest the next price point at $0.4.

xrp price chart
XRP/USD four-hour chart | Tradingview

Traders may want to keep their buy positions active if support at $0.5 and $0.488 holds. This way, the token has a chance to build momentum ahead of another technical rebound past $0.51 – the 50-day Exponential Moving Average (EMA).

Reclaiming the 50-day EMA (red) support/resistance is required for the next climb above the stubborn range at $0.55.

The daily chart insists on bulls rallying behind support between $0.488 and $0.5. Otherwise, investors may start acclimatizing to another sell-off to the next buyer area at $0.44 and $0.4, where XRP price would sweep through fresh liquidity for a stronger climb to $0.1.

xrp price chart
XRP/USD daily chart | Tradingview

Despite the ongoing daily candle, the MACD indicator affirms the bullish grip. In other words, XRP is dealing with a weak market structure due to the lack of momentum and liquidity. Supported by both, bulls would have a fighting chance at the descending trendline, the next resistance at $0.55, which if toppled would result in a sharp climb eyeing higher levels at $0.6 and $0.8.

XRP Investment Products Inflows Shrinking

According to the latest CoinShares weekly report, inflow volume in XRP investment products has continued to dwindle, falling by $2.7 million over the last four weeks. In total, $13 million has been channeled by investors in similar products, making XRP one of the top choices in the market behind Bitcoin, Short Bitcoin, and Solana.

Meanwhile, on-chain data reveals that XRP adoption in the US is on the rise mainly on Coinbase, one of the most popular centralized exchanges in the industry. XRP trading continues to rise compared to other tokens, with the volume averaging $462 million in the last month.

Besides the on-chain and technical factors impacting XRP, Ripple filed a motion opposing the SEC’s decision to appeal the July court ruling, particularly on the application of the Howey test ahead of the trial possibly in the second quarter of 2024.

The SEC, on the other hand, has requested the court to delay the case until the appeal is determined. Something Ripple has strongly disagreed with. Regardless, both parties are ready to face it off at the trial.

XRP price may see a significant breakout later this month with Ripple expected to announce its IPO plans during the Proper Party event. This will serve as an assurance of staying the course and helping restore investor faith in the project.

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.

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.

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