XRP price increased by 0.6% in the last 24 hours to trade at $0.435 during European business hours on Wednesday. The increase comes as Bitcoin price begins to recover from its recent drop in price. The price of Bitcoin hovered around $58,100, a 1.8% increase in the last 24 hours.

XRP Price Forms a Bearish Pennant, Is $0.35 Next Support?

XRP price recently broke out to the downside from a falling wedge, a pattern that typically has a low probability of occurring. However, when it does happen, it often results in aggressive price movements. XRP’s price dropped to a low of $0.382 before rebounding. Following this breakout, the price action appears to be forming a bearish pennant, which is a continuation pattern indicating a potential further decline.

The price action of XRP is trending below the 21-day, 50-day, and 200-day simple moving averages (SMAs) which act as resistance levels for the asset. If the bear pennant resolves to the downside, the XRP price may drop 17% to $0.35 with occasional support around  $0.371. On the flip side, if the bulls prevail, the asset’s price may rise back into the falling wedge in an attempt to test $0.55. Potential resistance levels include $0.45, $0.47, and $0.48.

BTC price on the other hand found some reprieve around $55,000 – $58,000 level. Similar to the XRP price, Bitcoin seems to also be forming a bearish continuation pattern – a bear flag. If this market structure resolves to the downside (as it is likely to do), Bitcoin price may drop further beyond the $50,000 weak support to $47,000. The latter coincides with a zone of market imbalance (orange) that must be filled if the price is to move higher.

On the flip side, if the BTC price rises higher, it may invalidate the bear flag and if it breaks past $60,000, may trigger further upside movement beyond the 200-day SMA to $67,200. 

Bitcoin Price Recovers And Ripple-SEC Case Shows Signs of Ending

Speculation of the end of the Ripple-SEC lawsuit floods the cryptoX space as market participants anticipate a final decision by July 31. July 26 is the deadline to file a notice related to the exclusion of experts’ testimony

Bitcoin price recovery happens amid massive whale movements in the crypto space. 

Despite the recent bounce in price, Germany continues to dump its BTC holding. As of July 9, it remained with 22,800 BTC, which constitutes less than half its original holdings.

Bottom Line

Despite positive market sentiment, XRP’s price continues to face challenges. This divergence between market expectations and actual performance signals a complex dynamic affecting XRP. It suggests that factors beyond general optimism may be influencing XRP price.

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Frequently Asked Questions (FAQs)

According to rumors, Judge Torres is expected to make his final decision by the end of July, concluding the case.

The current chairman of the U.S. Securities and Exchange Commission (SEC) is Gary Gensler. He has been serving as chairman since April 2021.

A bear flag is a technical chart pattern in trading that indicates a potential continuation of a downward trend.