XRP is currently testing a crucial support level, raising concerns about a potential price drop

The fourth-largest digital asset dipped to $2.34 at the time of writing, and is now attempting to flip the 20-day Exponential Moving Average (EMA) at $2.3492 into a support level

Crypto News:

* The fourth-largest digital asset, XRP, is currently testing a crucial support level, which could influence its near-term price trend.

* After a period of consolidation, XRP dipped to $2.34 at the time of writing, and is now attempting to flip the 20-day Exponential Moving Average (EMA) at $2.3492 into a support level. A failure to do so could open the door for further decline.

* Immediate support is present at the recently tested $2.30 level, while resistance is anticipated at the 50% Fibonacci retracement level of the March 2020 low to January 2022 high at around $2.64.

* Technical indicators are flashing mixed signals. The Relative Strength Index (RSI) stands at 48.91, indicating that the digital asset is neither overbought nor oversold. However, RSI readings below 50 can suggest weak bullish momentum.

* XRP is positioned near the middle Bollinger Band line at $2.3270, with the upper band offering resistance at $2.7169. Staying above the 20-day EMA could push XRP toward the upper BB range in the short term.

Some analysts are bullish on XRP’s long-term potential, with a breach of the $3 mark paving the way for a continuation toward the $15 mark, as predictions have suggested.

In other news, crypto analyst Ali Martinez has highlighted a significant breakout pattern on the XRP weekly chart. XRP has broken out of a multi-year symmetrical triangle, which could set the stage for a parabolic move toward $15.

A symmetrical triangle is a continuation pattern that forms when an asset consolidates within converging trendlines. Breakout from such formations usually leads to a strong rally in the direction of the prevailing trend.

The measured move, based on the height of the triangle, suggests that XRP could surge 500% from its breakout point, aligning with Martinez’s $15 projection.

"A symmetrical triangle formation on the weekly XRP chart suggests a potential surge toward $15 as the SEBI lawsuit provides a floor for the cryptocurrency. A breakout from the symmetrical triangle pattern could set the stage for a 500% rally in XRP, potentially propelling it to new highs of $15."

XRP’s price movement is also closely tied to the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

The agency has dropped lawsuits against major crypto firms such as Uniswap, Coinbase, and OpenSea. Market participants are now speculating about a possible settlement in the Ripple case as well.

Legal expert Jeremy Hogan said that the case could be resolved soon if Ripple and the S.E.C reach an agreement, dismiss the appeal, and forgo bringing the terms back to the trial court.

"My prediction is that the case will be over in the next three to six months if they decide to settle, dismiss the appeal, and don't bring the Factor IV terms back to the trial court to try to get them overturned. But if they do that, it'll be a quick and easy win for both sides."

However, if either party appeals the lower court's ruling or attempts to modify the Factor IV terms, the case could drag on for another year or two.

"If one or both sides appeal, or if one or both sides try to modify Factor IV, then it's going to be another 12 to 24 months. But if they're smart, they'll get it done in the next three to six months."

The post Crucial Support Level Awaits As XRP Attempts To Stay Afloat appeared first on Coin Edition.

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The post Crucial Support Level Awaits As XRP Attempts To Stay Afloat appeared first on Coin Edition.

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