XRP Price Could Turn Bullish, Here's What Needs to Happen
Ripple (XRP) has recently come under scrutiny due to significant downward pressure, raising concerns about its ability to maintain stability above the critical support zone of US$0.50.
This apprehension arises amid Ripple, the parent company of XRP, being entangled in a lengthy legal battle with the Securities and Exchange Commission (SEC), further adding uncertainty about the asset's future.
XRP Price Could Turn Bullish
According to a report from Finbold, recent analysis by a crypto analyst known as TheSignalyst, shared on TradingView on February 1, sheds light on the potential price direction of XRP amid these challenges.
The analyst outlines the bearish trend XRP has navigated, constrained within a descending channel pattern, emphasizing the significance of the lower boundary of this channel, where XRP finds crucial support at US$0.50.
XRP/USDT Market Binance Technical Analysis
This point is crucial as it can either reinforce the support level, providing a basis for potential bullish reversal, or conversely, succumb to bearish momentum, exacerbating the asset's decline.
The analyst optimistically notes that as long as XRP can hold above the US$0.465 support, there will be a search for short-term buying setups on lower time frames. For the bulls to take control from a short-term perspective, a breakthrough above the last minor peak at US$0.55 is needed. To maintain control and take over from a medium-term perspective, a breakthrough above the upper red trendline and the last high at US$0.60 is required.
However, despite prevailing bearish sentiment, the analyst also identifies conditions under which XRP could show upward potential. A crucial factor for a short-term bullish shift is a breakout above the last minor peak at US$0.55.
To secure medium-term control, the bulls need to breach the upper red trendline and surpass the last major high at US$0.60, marking a clear path for bullish dominance.
Current focus is on XRP surpassing the US$0.50 level beyond technical analysis, as market participants vigilantly observe its ability to retest the US$0.60 mark, a milestone not reached since mid-January.
During this period, XRP's price has fluctuated between US$0.55 and US$0.49, reflecting market uncertainty and heightened scrutiny from investors.
Investors and traders, particularly the bulls, view the current XRP situation as an opportunity to accumulate, anticipating an upward price trajectory.
This strategy aligns with XRP's recent experience with its first death cross of the year, a technical pattern marked by short-term moving averages falling below long-term moving averages, often interpreted as a bearish indicator.
Amidst these market dynamics, XRP's movements have mirrored the broader crypto landscape, which has lacked significant bullish catalysts. Notably, the ongoing legal battle between Ripple and the SEC, particularly regarding access to Ripple's financial records, has overshadowed XRP's market performance.
Adding to XRP's challenges is a recent security incident, including a significant hacking event resulting in the loss of 213 million XRP, equivalent to US$112.5 million, from the wallet of one of Ripple's founders, Chris Larsen.
This incident, the first major hack reported in 2024, prompted Binance to freeze XRP worth US$4.2 million associated with the breach, highlighting vulnerabilities in the crypto ecosystem and its impact on market sentiment.
In the latest report, XRP is trading at US$0.52, registering a daily increase of over 3 percent. However, the weekly chart shows a 1.6 percent decline, reflecting the ongoing struggle of this asset to regain bullish momentum.
Technical indicators from TradingView present a predominantly bearish outlook, with a consensus sell confirmed by strong sell signals from moving averages, although oscillators show slight bullish divergence with buying signals around 2.
