Unlike the bullish Bitcoin and Ethereum, XRP is still sinking in the red. While the former is witnessing an upward movement, the latter is suffering from losses. Attempts to push XRP above $0.5 have been futile as the token’s upside remains capped under the 100-day Exponential Moving Average (EMA). Currently trading at $0.4848, the nearest support at $0.48 is expected to come in handy for XRP. However, investors may need to acclimatize to losses as low as $0.4450, which was its lowest point in June.
These struggling prices come amidst Ripple’s ongoing battle with the Securities and Exchange Commission (SEC) over regulatory clarity in the US. Ripple CEO Brad Garlinghouse has criticized the SEC’s approach, accusing the agency of acting in bad faith and stifling innovation within the cryptocurrency sector. Specifically, Garlinghouse points to the lack of clarity over what types of digital currencies or blockchain technologies the SEC is targeting.
The CEO believes that the industry must unite, as the SEC’s regulatory enforcement might potentially extend to other crypto enterprises. His concern is that the battle his company has faced could be just the beginning for others in the sector.
For a moment, XRP investors believed the price drop below $0.5 was temporary and that a recovery would soon follow. However, as the price continues to decline, technical indicators like the Moving Average Convergence Divergence (MACD) could validate a sell signal, pushing XRP further into the red. Investors looking to short positions might consider waiting until the MACD line crosses below the signal line.
Despite the current losses, there is still a possibility that XRP will bounce off short-term support at $0.48. For that to happen, the most critical support, lying with the lower ascending trendline, must be defended. Breaking and holding below that trendline would make it challenging for bulls to facilitate an immediate recovery, meaning the path with the least resistance would be upward.
To achieve near-term gains, traders must closely monitor the support at $0.48 and the ascending trendline. On the upside, breaking through the resistance at $0.5 could pave the way for gains towards $0.56 and an ultimate climb to $1. However, until XRP can reclaim resistance at $0.5, the future remains uncertain for both the token and its investors.
Source: Coingape
