The price of XRP fell after a significant increase earlier this week. The reason for the price surge was a favorable ruling by the court in the case against the U.S. Securities and Exchange Commission (SEC) behind XRP company Ripple.
The court ruling clarified that the sale of XRP is not considered a security, leading to increased interest from investors in cryptocurrency as a global remittance token. Many investors hope that this rebound will push the price above $1, even reaching the historical high of $3.40 in January 2018.
After breaking through the trading range of $0.45 to $0.55, the price reached $0.93, a level not seen since July 2021. The price then dropped, finding support around $0.70.
The price of XRP faces potential further decline, falling 5% on Friday to a trading price of $0.7785. The MACD indicator suggests a strengthening bearish trend, marking the second sell signal within a week.
The MFI index indicates that sellers currently have the advantage, which could push XRP to reposition against other major cryptocurrencies such as Bitcoin and Ethereum, starting from early June.
Support is expected to appear between $0.70 and resistance at $0.80 for a consolidation phase. The 50-day moving average will alleviate selling pressure at $0.73 and support the key support level at $0.70.
Fractal analysis from Cointelegraph warns that by July, the XRP price could drop by 65%, citing factors such as overbought RSI and resistance from the multi-year downtrend line.
The downtrend resistance line has restricted the upward trend of XRP price since 2018, while the level resistance line near $0.93 adds further complexity.
Given these resistance levels and overbought RSI, the price of XRP may experience a market adjustment, possibly reaching a support level of $0.40 in July, a 40% decrease from the current market value.
Despite this potential decline, XRP remains one of the best-performing cryptocurrencies in May, with a 30-day value increase of 57%.
