The XRP price has been under intense pressure lately even after the relatively positive news. Ripple is trading at $1.0320, which is close to its lowest level since October 28 this year. The coin has crashed by more than23% from its highest level this month. This price action is similar to that of Bitcoin and Ethereum.
There have been several important developments in the past few days. First, in an interview with CNBC, Ripple’s CEO said that he was seeing strong progress on its long-standing case with the Securities and Exchange Commission (SEC). He said that so far, the company was seeing good questions from the judge, signalling that the ruling will be favourable. This ruling is expected in 2022.
Second, the XRP price has struggled even as Ripple Labs unveiled Ripple Liquidity Hub aimed at fintech companies. The new product will help companies in the network to accelerate their funds transfer business.
Third, it was revealed that Ripple Labs founder had not sold any XRP in the past three months. His holdings are now worth more than $730 million, meaning that he was comfortable and optimistic about the currency.
The chart below shows that the Ripple price has been in a strong bearish trend in the past two weeks. Along the way, the coin has found a strong support level at $1.0168, which was the lowest level on November 18th. It has also formed what seems like a descending triangle pattern. Most importantly, the bearish trend is being supported by the 25-day moving average.
Therefore, there is a likelihood that the XRP price will have a bearish breakout in the coming days. This view will be confirmed if it manages to move below the support at $1.0168. It will also be invalidated if it moves above the hypotenuse of the descending triangle.
This post was last modified on Nov 25, 2021, 07:00 GMT 07:00