XRP is trading around $0.6 at press time, with a 2% decrease over the last 24 hours. While the broader crypto market has rallied over the past month thanks to positive Bitcoin ETF approvals and altcoin surges, XRP has barely budged, dropping 4% in the last 30 days.
According to crypto analyst Petar from CaptainAltcoin, XRP is sending mixed signals. On Twitter, he noted that XRP is “Trading in a Channel Down pattern, it’s flirting with the 200-day MA, hinting at potential shifts.” A Channel Down pattern indicates likely further downward price movement within set boundaries.
However, Petar also highlighted XRP’s relatively strong RSI of 54, plus sturdy support at $0.45 aligned with the 4.236 Fibonacci level. This suggests there is still a bullish undertone in place. As he summed up, traders should “Watch closely!”
As Petar explained, XRP is currently trading within a Channel Down pattern. This means it is fluctuating between set upper and lower trendlines, with a downward sloping direction.
Traders will often initiate positions while the price moves inside emerging channel patterns, expecting it to remain between support and resistance. However, once a breakout occurs – meaning XRP closes decisively above or below the channel lines – the price can then rapidly accelerate in that direction.
So if XRP breaks upward through channel resistance, it could rally swiftly from there. But a breakdown below channel support could lead to an aggressive leg lower. Traders should prepare for either scenario while monitoring the boundaries of this Channel Down formation. Breakouts often occur quickly after consolidating movements, so ready positions are key to capitalizing on any eventual breakout momentum.
SEC vs. Ripple
The lackluster price action might be tied to impatience around the ongoing SEC vs Ripple lawsuit. The SEC alleges Ripple illegally sold XRP as an unregistered security, though no formal ruling has occurred yet.
Yesterday (On Thursday), the SEC filed a motion to compel Ripple to produce financial statements for 2022-2023, plus post-complaint contracts related to institutional XRP sales. The judge has ordered discovery to finish by February 12th before deciding on penalties.
Notcoin airdrop on Telegram made millions to people. Don’t miss out on the next TG airdrop by the same team – Dogs on Ton!
Show more +This legal uncertainty continues weighing on XRP investor confidence. However, the token has held support despite the allegations. Analysts suggest traders keep a close eye on the court case alongside technical levels. A breakout in either direction seems possible depending on the impending rulings.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
