The crypto is now seeking to gather momentum, with bulls stepping up and propelling the token up overnight after a break above the main technical pattern.
Where the token patterns in the medium term would inevitably depend to a large degree on whether or not bulls will maintain their momentum
With its fundamental strength getting weaker by the day, there is a high likelihood that XRP’s price will begin to sink slowly over the coming weeks.
Drying volume, restricted access for US citizens, and confusion about its future can all impede its outlook.
XRP has been one of the worst-performing big altcoins in the latest bull market. After having a parabolic spike that sent it from a low of $0.25 to a peak of $0.90, the cryptocurrency started a decline that is still going on.
The timing of this rally was very curious, as it coincided with the Spark token airdrop and prompted XRP to see its first parabolic move in years.
After the dust settled and its price stabilised at $0.50, the SEC filed a lawsuit against Ripple, accusing them, among other things, of operating an unregistered security offering.
XRP Faces Immense Pressure as Fundamental Weakness Grows
At the time of publication, XRP is selling more than 10% at its present price of $0.24. This represents a huge surge from its $0.17 weekly lows set only a few days earlier.
The crypto has held stable over its $0.20 support mark, but it is uncertain where this buy-side support comes from.
Apart from Kraken, almost every major U.S. exchange announced plans to withdraw the token later this month.
This will push the investors to either sell, hang on to Ripple’s hopes of winning the SEC case, or use decentralised trading platforms.
Latest Rally the Result of a Technical Breakout
XRP’s big leap up the night is possibly due to a combination of a technical breakout and a short squeeze.
Funding prices for short positions across margin trading sites have been very extreme, which may explain this rally.
One analyst also noted that it was pushing against a symmetrical triangle pattern before the move, which may have sparked a flurry of buying pressure from swing traders.
“XRP symmetrical triangle, could really break either direction, no real bias here. Either direction should give a nice little pop. Money to be made here.”
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
The coming few days should shed some serious light on XRP’s outlook, and its immense fundamental weakness may cause every bounce to be aggressively sold into.
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