XRP Price Movement Analysis for 6th June, 2021

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When the US Securities and Exchange Commission initially filed a lawsuit against Ripple Labs Inc. in December 2020, XRP plummeted to a 6-month low of $0.17. In the following four months, its value increased to a peak of $1.96 in April as XRP progressively reinvented itself as a key altcoin in the market.

Even more amazing was the fact that these gains were accomplished while Ripple attorneys were battling SEC representatives. A bullish Bitcoin, on the other hand, was most likely the key impetus for XRP’s remarkable ascent in such a short period of time. Since the 19th of May, when Bitcoin plummeted, market dynamics appeared to have inverted.

XRP Daily Chart

A check at the daily chart of XRP revealed that the cryptocurrency lost more than 60% of its value in only 5 days, going from $1.64 to $0.64. The bulls have made many attempts to rebound, but their gains have been confined at $1.06-$1.08 resistance. While lower highs were set in the process, the price of XRP was in a vulnerable position.

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Argumentation

While it was unsurprising that XRP’s 20-SMA (red) and 50-SMA (yellow) fell below the candlesticks following the rapid sell-off on May 19, the 200-SMA (green) was catching up to the short-term moving averages. A death cross appeared distant, but the condition of the market suggested a crossover in the coming days. MACD still remained below the half-line and even closed in on another bearish crossover.

Furthermore, the RSI has failed to rise over 50 in the last two weeks, but higher lows have created some hope. Because negative indications persisted across the market, it appeared that buyers were running out of time to launch a rally back to May highs.

In conclusion

Because the market has exhibited some neutrality, XRP may experience rangebound volatility between $0.90 and $1.06 in the next days. However, it was predicted that selling pressure would finally take control and pull the cryptocurrency down.

 

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