XRP News; Technical indicators and current news seem to be moving in favor of the XRP token for a potential price increase.
After the most recent drop that saw nearly $100 billion wiped from all cryptocurrency markets, XRP buyers may have found a fundamental reason to push prices up again.
Is XRP at its breaking point?
XRP may be ready to rally after a new development in Ripple’s case.
The ongoing litigation between Ripple and the Securities and Exchange Commission has entered another round after Ripple’s legal team accused the SEC of violating Section 17(b) of the Securities Act. The rule requires courts to give judicial notice of facts that are not the subject of reasonable discussion and facts that come from sources that cannot reasonably be questioned.
While the filing is part of the SEC’s move to dismiss its claims against Ripple executives Brad Garlinghouse and Chris Larsen, it appears that XRP could benefit from it temporarily.
XRP Technical view
The cross-border remittance token is currently hovering above a key support area represented by the setup trendline of the Tom DeMark (TD) Sequential indicator at $0.52. More importantly, TD offered a buy signal on XRP’s daily chart that could give the token the upside pressure it needs to avoid a catastrophic collapse.
The bullish pattern developed as a red nine candlestick, indicating that XRP could rise for a one to four day candlestick.
If confirmed, the seventh-largest coin by market cap will likely rally to the descending trendline formed since May 20 and currently hovering around $0.58 or the Death cross between the 50 and 200-day moving average to $0.75.
Despite the short-term bullish scenario, it is worth noting that the technical pattern behind XRP’s price action is the death cross. Some of the most prominent analysts in the industry believe this is one of the most important bearish formations to mark the beginning of a bear market.
Therefore, traders need to be very careful with the $0.52 support as a break below this critical price point could lead to selling. By breaching this demand zone, XRP could face a drop towards $0.40 or even $0.28.