- Summary:
- The lacklustre Ripple price action is disheartening to watch. XRP cannot sustain a rally. And what can't go up usually comes down.
The lacklustre Ripple price action is disheartening to watch. XRP cannot sustain a rally. And what can’t go up usually comes down.
Ripple is again turning south and is trading at $0.6385, lower by 2.18% this morning.
The technical backdrop for Ripple briefly improved on Sunday. XRP managed to climb above the descending trend line that had capped every rally attempt since the May crash.
However, as I noted on July 5th, the breakout was unconvincing, and subsequently, XRP’s modest rally has faded.
Ripple has retreated more than 6% over the last seven days. Furthermore, its market cap has shrunk to $29.3 billion, only marginally higher than Dogecoin’s $28.34 billion.
The ripple price has more than just broader cryptocurrency sentiment to deal with. The drawn-out lawsuit the SEC has brought against Ripple Labs is weighing heavily on XRP. And until there is a resolution, it’s likely to remain a significant headwind for the price.
XRP price forecast
Looking at the daily chart, we see the Ripple price has tracked back to the support of the descending trend line at $0.6200. This marks the third straight day that XRP has been glued to the support level.
Additionally, Ripple remains below the major 50, 100, and 200-day moving averages.
Furthermore, the price has broken down from a bear flag pattern, in place from the 22nd of June low at $0.4799.
Given the current lethargic performance, it’s probable that XRP will soon trade below the supportive trend. And if it does, it could find itself back at the June low.
As long as Ripple remains below the 200 DMA at $0.7363, the outlook is negative. However, above the 200-day and, more importantly, the strong horizontal resistance of $0.7700, the negative outlook becomes positive.
Although, that could require a ruling in Ripple’s favour.
Ripple price chart (daily)
Follow Elliott on Twitter.