It has been an interesting week for Ripple’s XRP token. XRP price rose above $ 0.75 for the first time in 2021. However, the token depreciated drastically shortly after its exciting rise.
XRP appears to have secured a $ 0.35 support, but the technical outlook indicates that XRP could start a further downward movement.
XRP is the US Securities and Exchange Commission’s (SEC) Ripple Labs Inc. and he was hit hard by suing his senior officials. The SEC claims that Ripple sells tokens to investors unregistered.
Multiple exchanges, including Coinbase, stopped trading XRP, citing regulatory compliance issues. However, PrimeXBT, the latest exchange that has stopped trading XRP, says there are “major events around Ripple” and no support from liquidity providers. You can reach our detailed news about this here.
Short-term analysis shows that Ripple is approaching a 25% drop towards $ 0.28. The formation of a symmetrical triangle pattern indicates a break from the ongoing consolidation. As can be seen below, this pattern is created by drawing a descending trendline to connect a number of low peaks. At the same time, the asset’s higher lows are connected using a rising trend line. The price movement in the pattern can be an upward or downward break. An upside break occurs when the price breaks above the upper trend line. On the other hand, a bearish break occurs when the price reaches levels below the lower trend line. Refractions have a precise target measured from the highest to the lowest points of the triangle.
The negative outlook can be reinforced by the network growth scale, which measures the number of new addresses joining Santiment’s XRP protocol daily. The scale peaked at about 12,600 addresses on February 1, but fell sharply to about 4,300 in just two days, representing a 65.9% drop. The drop in question indicates that there are fewer purchases of XRP in the market, primarily due to the price drop. If the network growth does not improve, the XRP value may continue to drop to $ 0.28.
Besides these, XRP can also ignore the drop and instead collect 25% towards $ 0.5. As mentioned, a break above the symmetrical upper trend line can cause an upward price action. Also, a $ 0.4 close could create new purchases, which could create enough volume to support the uptrend.