XRP Price Analysis: Is Ripple Price Ready for Comeback?

XRP price analysis: On Monday, during U.S. trading hours, Bitcoin’s price plummeted to $60,000, intensifying supply pressure in the crypto market. The renewed selling extended the correction phase in several major altcoins including XRP. With an intraday drop of 2.7%, the XRP price plunged to $0.466 hovering close to the multi-months support of $0.46. Will crucial support assist XRP for fresh recovery or sellers are prepared for further dowfall?

XRP Price Analysis: Bears Control May End Soon

The price of XRP has been trending below the 50-day and 200-day simple moving averages (SMA) since April 12. On April 20, a death cross appeared on the XRP price chart, further confirming the downtrend. Additionally, the price of XRP formed a symmetrical triangle structure with a 50/50 chance of breaking out in either direction.

On June 7, XRP’s price broke downward, hitting lows of $0.454. The relative strength index (RSI 14) also fell below its moving average (MA). However, at 37, the RSI indicates limited room for further decline. Despite these negative developments, XRP continues to hold a critical support level around $0.475. The price breakout is still part of a wider consolidation zone, with a strong upper boundary around $0.57 and a lower boundary around $0.46.

Two scenarios could unfold: a further drop to a lower support level around $0.429, or a bounce from the current support back to the top of the range around $0.57. In both scenarios, a bounce is expected. Key resistance levels to watch are $0.49 and $0.56.

Additionally, data from CoinGecko shows the 24-hour trading volume of XRP surged by 58%. This hints at an increasing interest among investors.

What is Causing the XRP Price Downturn?

Despite a win with Judge Hamilton, the price of XRP continues to decline. Ripple CEO Brad Garlinghouse suggests that misleading statements from crypto news platforms might be a contributing factor.

As many have noticed – and some have already pointed out – there have been numerous misleading and some factually inaccurate headlines describing the decision made by a California judge yesterday in the class action lawsuit about XRP. (I’m happy to see some correcting them – I…

— Brad Garlinghouse (@bgarlinghouse) June 21, 2024

On Twitter, Garlinghouse clarified that the single state law claim proceeding to trial involves plaintiffs who he described as “trolls,” attempting to exploit the U.S. legal system and distort statements for substantial class action settlements. Notably, the plaintiff in question owned only 200 XRP.

Conversely, crypto whales have been accumulating XRP amid the price drop. Whale Alert, a market watcher, detected a significant transfer of XRP from Binance to an unknown wallet last Friday.

Bottom Line

Last week’s ruling by Judge Hamilton was a big win for Ripple in their lawsuit against the SEC. Nevertheless, rogue market elements, including anonymous whales, continue to undermine XRP price but a price reversal could be on the horizon.