XRP is still bleeding. This is truly a fact well-known in the cryptocurrency market. This token did not reach its previous all-time high yet, and has a pending SEC lawsuit. Those factors combined with mixed feelings in the crypto market created a strong downtrend for XRP. On the other hand, looking at the chart tells a different story. In this XRP price prediction article, we analyze XRP from a technical view and see why XRP price today is in the perfect buy zone!
What’s new with Ripple and the SEC Lawsuit?
Back in mid-April 2022, Ripple company managed to advance positively in the lawsuit case against the SEC. The judge decided that the SEC needs to release important documents that Ripple company will be able to refute going forward. Considering that Ripple might settle will definitely be a huge win for the company. The case should in theory be resolved between 60 to 90 days (by end of August 2022).
Why is XRP Price Down?
XRP price has been on a sideways trend since the crypto market crashed back in November 2021. The trend is delimited between $0.61 and $0.92. Day traders managed to benefit significantly from this price action, as taking correct action becomes very predictable when trading. Traders will simply buy around the $0.61 area and sell around the $0.92 area.
Since the beginning of April 2022, XRP prices have been heavily sold. This brought prices back towards the strong support of $0.61, losing around 35% in value.
XRP Price Prediction – Will XRP rebound higher?
If we look at figure 2 below, we can see that XRP prices formed a descending triangle since last year. The strong support of $0.61 was tested 5 times previously, including today. Prices are expected to continue to oscillate in this triangle until it breaks from either sides. It is more probable that the break will occur from the upper side, pushing prices to explode soon after.
Opening a buy position at the current price is definitely a good idea, as prices are expected to rebound higher. Of course, placing an adequate stop-loss should be in place, specifically around $0.56. On the other hand, the upside will definitely be a previous important price area. First target around $0.92, second around $1.2. The latter would yield a 100% return if you place a buy order today 😉