The price of the XRP is showing signs of upward movement in the short term, despite the ongoing SEC case against Ripple.
XRP should break through this key resistance to regain the momentum of PRICE HIGHNESS
XRP holders are still struggling around the $0.30 area, while most cryptomorph markets are euphoric with the price of Bitcoin (BTC) exceeding $40,000.
The price of BTC is currently more than 100% higher than its all-time high in 2017, while the price of XRP is still more than 90% below its 2017 high. An SEC case against Ripple is certainly not optimistic and is the main reason for this general weakness, as it is leading some exchanges to slide the asset.
However, the chart may give some potential upside outlook for the near term if the price of the XRP breaks several crucial resistance levels.
It is necessary to break the resistance at $0.32-0.345 to rise any further.
The XRP chart shows a very strange price pattern, as the XRP price Bitcoin Up has reversed the $0.21 area to support beautifully in 2020. This reversal of support/resistance caused a break above the significant resistance zone by US$0.32-0.35. This disruption led to a race to the $0.80 region, one of the most significant XRP peaks in recent years.
However, the fundamentals began to emerge when the SEC unveiled a case against Ripple, causing the price of XRP to fall in that band.
Now the structure itself is destroyed and seems a bit strange to map. Regardless of this bizarre move, crucial and beneficial levels can still be determined from here.
The critical level for the bulls is the low of the $0.21-0.23 range, which has once again provided support in recent weeks.
Yes, the candles have fallen below US$0.21-0.23. However, the candle closes were up, indicating that support for XRP was found.
At the lower end, the US$0.295 area is critical
One hour XRP/USD chart. Source: TradingView
Traders often extend deadlines to reduce critical levels. Based on the higher deadlines, critical levels are set at US$0.21-0.23 and US$0.32-0.35 as support and resistance zones.
However, the 1-hour chart shows another critical level. This level is the US$0.28-0.295 zone, marked in grey in the graph.
While this supports support, various endurance tests may occur. As the saying goes, the more often a resistance is tested, the weaker it becomes. Therefore, a $0.50 break is at stake.
On the other hand, if $0.28-0.295 loses support, the next support area will be the highest support period between $0.21-0.23. This area is also the low range over 2019 and 2020 and could open up a longer accumulation period for XRP.
XRP/BTC pair is defeated
The XRP/BTC pair looks disgusting as it has made new lows since the January 2018 high.
Therefore, there are no arguments to be found to take any position in the XRP. However, there are some arguments to look for a potential reversal. One is the large increase in XRP trading volume recently, indicating that traders are accumulating crypto currency.
This could turn into a bullish cycle once again if the XR price turns the previous support levels at 0.00001550, 0.00002050. 0.00002350 sats for support.
The final argument is to observe a possible upside divergence in daily, 3 day or weekly schedules. Once this starts to happen, a reversal may be close to XRP. However, until then, it is still in a very precarious situation with a bearish outlook.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of the Cointelegraph. Every investment and trading movement involves risk. You should conduct your own research when making your decision.