- Summary:
- Ripple price is trading within a horizontal channel as the SEC lawsuit dampens investors' enthusiasm for the cryptocurrency.
Ripple price has been trading within a horizontal channel since Monday as its SEC lawsuit seems to have no end in sight. Recently, lawyer James K. Filan, noted that neither the government nor Ripple Labs is willing to give in. As such, a settlement is unlikely in the near future.
The regulatory talks included in the $1 trillion US infrastructure bill have further dampened investors’ enthusiasm over the crypto. However, an improvement of the risk sentiment has helped support prices.
XRPUSD technical analysis
XRPUSD has been trading within a rather tight range since Monday. After hitting a one-month low of 0.5144 on 20th July, the crypto surged to 0.7746 on Sunday. However, the 51.15% rise has been followed by a fall to Wednesday’s low of 0.6918.
At the time of writing, it was down by 1.03% at 0.7236. Since Sunday, it has dropped by around 7.52%. On a four-hour chart, it is trading along the 25-day EMA and slightly above the 50-day EMA.
In the near term, I expect Ripple price to trade within a horizontal channel of between the prior resistance level of 0.7363 and Wednesday’s low of 0.6918.
A bullish breakout will place the next resistance levels at 0.7500 and 0.7746. On the flip side, if the bears manage to push the price past the channel’s lower border, the levels to watch will be 0.6751 and the psychological 0.6500.
