XRP Bulls Prepare For Resistances Towards the $0.47 Key Hurdle
The XRP/USD trading pair eases after settling at a low of $0.4216 on early Monday and now trading at $0.4401. This is a significant recovery considering what the coin has gone through in the recent months. The legal problems for the coin have been compounded by the recent red the whole crypto market saw last week.
With the momentum indicator for the coin favoring its recovery, Ripple buyers are confronting a 61.8% Fibonacci retracement comparable to the January 27 to February 1 upside, which saw the cryptocurrency trade at around $0.4400. However, this may be challenged by the upper line of the falling channel that has been present for a week and the 200-bar SMA. These two resistances are at $0.4525 and $0.4655 respectively.
Caption: The Ripple XRP struggles to recover amidst its legal woes
The upside for the XRP/USD trading pair may remain doubtful at $0.4655, but a sustained bull run will definitely bring the price up to $0.5000. A bull run with a great momentum may even being the XRP past the one-month-old resistance line at $0.6150.
On the flip side, if the bulls fail to reach key supports, the stated horizontal support of $0.3950 will precede the support line of the immediate channel at $0.3810, and push the coin immediately downwards.
Further loses below the $0.3500 levels, will probably result to the coin sliding further down towards the January 2021 lows at $0.20. This will validate the sellers who completed their transactions from February 1 to February 21.
Regardless, any developments would be less likely to be please even if upside corrections were to happen for the coin.
This is further compounded by the lack of a conclusive results regarding the lawsuit filed by the US Securities and Exchange Commission against Ripple and two of its top executives. Also, the increasing number of exchange and companies that have severed ties with the coin is making its chances for recovery bleak.