XRP is today in redlosing grip on its recent gains as the bears act on its price. The bulls had maintained price momentum and pushed XRP to $0.4688 on May 19. The asset traded within this range until May 24, when the bears dropped it to a closing price of $0.454.
But today, the price of XRP has gradually dropped to the $0.451 level as the bears continue to put pressure on the price.
More bearish trend for XRP
XRP is in a downtrend today, forming a second consecutive red candle on the daily price chart with lower lows. The asset is trading under 50 days Simple Moving Average (SMA), a short-term bearish sentiment. The 50-day SMA indicates the average price of XRP over a period of time.
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Also the Relative Strength Index (RSI) is 46.71 in the neutral zone and falling, further confirming bearish sentiment for XRP. The RSI has two critical regions: the overbought region and the oversold region. RSI values between 70 and 30 are neutral.
Given the downward trend of XRP’s RSI, the asset is entering the oversold territory from which a trend reversal is imminent.
XRPs Moving Average Convergence/Divergence (MACD) above its signal line, indicating bullish sentiment. However, the MACD is showing negative values and the histogram bars indicate a bearish reversal.
The MACD identifies an asset’s trend direction and is often used to place trades. Currently, it is showing a preliminary sell signal in today’s market. But XRP is trading above the 200-day SMA, suggesting a long-term bullish trend.
The altcoin is trading at the $0.4504 support level as the bears try to push it down. Bearish pressure at the $0.46591 resistance level pushed XRP into a downtrend.
With a further drop, XRP returns to the $0.44446 support level and pushes into the oversold area. XRP is likely to register more price declines in the near term.
However, since it is still trading above its 200-day SMA, a long-term bullish sentiment, the bulls will rise again once they regain control of the price.
XRP updates can influence long-term price action
Ripple Labs’ ongoing lawsuit with the US Securities and Exchange Commission is likely one of the reasons behind XRP’s price drop. As Ripple’s CEO said, the case could probably be finalized soon.
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Ripple Labs Attorney Kylie Chiseul Kim filed a letter to step down as legal counsel for their pending case. The attorney leaves her former employers, Kellogg, Hansen, Todd, Figel & Fredrick PLLC and Devbevoise & Plimpton LLP. Nevertheless, the court files stated that the law firm would remain Ripple Labs’ counsel.
Featured image from Pixabay and chart from TradingView.com