Ripple’s native token, XRP, continues to struggle under significant selling pressure, trading just shy of $0.55.Currently, Ripple’s XRP is struggling below $0.55, under significant selling pressure that has persisted over the past week. This downturn in XRP’s price is concurrent with broader market declines, highlighted by Bitcoin’s fall below $58,000 and Ethereum’s drop beneath the $2,500 mark.
XRP Consolidates as Bears and Bulls Battle for Contro
From a technical standpoint, XRP has shown resistance near $0.60, with support forming around the $0.55 mark. The token’s trading volume surged by over 77% in the past 24 hours, indicating heightened activity likely tied to the recent token release and ongoing legal developments. However, the price has not responded positively to this increased activity, indicating a bearish outlook among traders.
As of September 2, 2024, XRP is showing signs of consolidation after a recent downturn, as evident in the 1-day chart. The price is currently trading at $0.55523, reflecting a slight recovery of 1.38%. XRP’s price is hovering just above the 20-day EMA, which sits at $0.55236, but remains below the 50-day, 100-day, and 200-day EMAs, indicating ongoing bearish pressure. The EMAs are acting as resistance levels, with the 50-day EMA at $0.56485 and the 100-day EMA at $0.57313, both reinforcing the overhead resistance near $0.56-$0.57. This suggests that XRP needs to break above these resistance levels to regain bullish momentum.
The RSI is currently at 50.91, indicating a neutral position, but leaning slightly towards the oversold territory, which could signal a potential reversal if buying pressure increases. However, the RSI’s recent movement below its midline suggests that bearish sentiment still dominates the market. The overall price action suggests that XRP is at a critical juncture, where a break below the immediate support at $0.54919 could lead to further downside towards $0.53873, while a break above the resistance zone could reignite bullish momentum towards the $0.60 mark.
XRP Releases 1 Billion Tokens from Escrow: Market Reacts Amid Ongoing Legal Uncertainty
Ripple’s 1 billion XRP release from escrow has had a big impact on the price. It was released in 3 transactions 500m, 200m and 300m XRP. All this extra supply in the market has added to the selling pressure and XRP can’t get above $0.60.
Market is still bearish overall and major cryptos are down. Ripple’s situation is complicated with the ongoing legal battles with SEC. Despite hopes that recent developments in the Ripple-SEC case would spark a XRP rally, price is still down. Market is reacting as if investor confidence is still shaky especially with the SEC’s option to appeal the recent court ruling in favor of Ripple.
Short term looks bearish as market absorbs the new supply and the ripple effect of the SEC situation. Next few weeks will be interesting to see if we see a reversal or further down.
