The Ripple price is finding support around the September lows on Monday, as the bulls attempt to stem XRP’s slow bleed lower.
Ripple (XRP) has started the week slightly firmer at $0.9770 (+0.70%), around 11% above the weekend lows. However, despite the modest bounce, XRP remains about 30% below the November high and a 50% discount to May’s 2021 high. The poor performance over the last six months has seen Ripple flipped by rival projects. XRP’s current valuation of $46 billion places it below Cardano as the 7th-largest cryptocurrency.
Undoubtedly, Ripple labs ongoing case with the SEC has sucked liquidity from XRP. The well-publicized debate whether Ripple’s ICO violated SEC rules has made it difficult for the coin to maintain a sustainable rally. Subsequently, the Ripple price has underperformed the broader market this year, making it vulnerable to a steeper correction, as investors choose assets outside the SEC’s cross-hairs.
The daily chart shows the Ripple price is grappling with the 200-Day Moving Average at $0.9770 this morning. In my opinion, if the price fails to clear the momentum indicator in today’s session, it would reinforce the bearish breakdown. However, September’s low at around $0.8400 offers significant support.
Furthermore, the Relative Strength Index is attempting to turn higher. Not to mention that the crypto market, in general, is finding a bid.
Taking the above into account, I expect Ripple will at soon recover the 200-DMA. In that event, the price should advance towards the 50, and 100-Day indicators situated around $1.100. However, if the price falls below $0.8400, the outlook will turn decidedly bearish, invalidating the cautiously bullish view.
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This post was last modified on %s = human-readable time difference 04:23