XRP chart analysis:
XRP Recovery Possible if SEC ETF Decision Turns Favorable
XRP is currently under pressure as investors wait for the U.S. Securities and Exchange Commission (SEC) to make a decision on several spot XRP Exchange-Traded Fund (ETF) applications. These ETFs, if approved, could help XRP reach more mainstream investors. However, the uncertainty surrounding the SEC’s decision has kept the market cautious.
Recently, XRP's price has dropped slightly by 0.5%, adding to its weekly loss of over 6%. This decline reflects the cautious mood among traders, who seem unsure about the short-term direction of the market. Despite strong interest in cryptocurrencies, XRP hasn't managed to hold its ground in recent days.
On Wednesday, XRP closed below its 50-day Exponential Moving Average (EMA) at $2.29 and continued falling by another 3% on Thursday. By Friday, it was trading even lower, near $2.21. If the downtrend continues the price might drop further and test the next key support level at $1.96.
Technical indicators show that XRP might face more selling pressure. The Relative Strength Index (RSI) is at 40.58, which is below the neutral 50 mark and moving downward. This suggests that bearish momentum is strong. Also, the Moving Average Convergence Divergence (MACD) indicator has shown a bearish crossover, hinting that the decline may not be over yet.
However, there is still some hope for recovery. If XRP can bounce back, it might rise again to test its 50-day EMA at $2.29. A positive update from the SEC regarding the ETF applications could boost investor confidence and help XRP regain its recent losses.
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