Currently trading at $0.5368, XRP is facing increasing pressure as the cryptocurrency stabilizes within a bearish flag pattern. The legal battle between Ripple and the US Securities and Exchange Commission (SEC) continues to shape market sentiment.
After three years of legal conflict, a US court has ruled that XRP is not a security, but the lawsuit remains pending as Ripple has filed a cross-appeal to challenge the SEC’s actions. It’s in progress.
The outcome of this lawsuit could have far-reaching implications for the regulatory landscape of virtual currencies. Ripple believes that settlements and court decisions will impact how other digital assets are treated, and is seeking regulatory clarity.
This continued uncertainty is weighing heavily on XRP’s price performance, especially as the token grapples with bearish technical indicators such as an impending death cross.
The term “death cross” refers to a bearish technical signal in which the short-term moving average breaks below the long-term moving average, indicating a possible decline.
What does a death cross mean for XRP?
Death crosses are usually a harbinger of further downward pressure on asset prices, and if XRP fails to break out of its current consolidation pattern, it could head in this direction. The altcoin is currently stuck in a symmetrical triangle and is unable to achieve a bullish breakout.
The bearish outlook for XRP has become even more pronounced as the cryptocurrency market faces increased regulatory scrutiny.
The immediate resistance level for XRP is $0.5376. If the token fails to break through this level, it is likely to continue its downward trajectory.
The major support levels are located at $0.5250 and $0.5074. If XRP breaks below these support levels, bearish sentiment will intensify and could lead to a deeper correction in the short term.
Meanwhile, the 50-day exponential moving average (EMA) is hovering around $0.5397, slightly above the current price, providing further resistance. The Relative Strength Index (RSI) is at 49, indicating neutral market conditions, suggesting that XRP could swing either way in the short term.
XRP Price Prediction: What’s Next?
XRP price movements have been closely monitored, especially amid legal uncertainty. At the moment, XRP is showing signs of consolidation within a bearish flag pattern, which historically indicates the possibility of further decline.
If XRP fails to break above $0.5376, the next possible target would be the support level at $0.5250, followed by deeper support at $0.5074. These levels are very important as any breach could accelerate selling pressure.
Conversely, a break above $0.5376 will invalidate the bearish setup and could lead to a bullish reversal. The next resistance levels to watch in this scenario would be $0.5559 (38.2% Fibonacci) and $0.5712. While these levels will likely determine XRP’s ability to regain upward momentum, market sentiment remains heavily influenced by ongoing litigation.
Conclusion: Bearish sentiment dominates the outlook for XRP
XRP’s current technical settings, especially the bearish flag pattern, suggest potential downside risks going forward.
If the price fails to break out of the immediate resistance level at $0.5376, XRP could fall further towards $0.5250.
However, if a breakout occurs, traders could see XRP test higher resistance levels near $0.5559 and $0.5712.
XRP price movements are likely to remain volatile in the coming weeks as uncertainty is heightened by the ongoing SEC litigation.
