XRP is today in the redit is losing control of its recent gains as bears act on its price. The bulls maintained the price momentum that drove XRP to $0.4688 on May 19. The asset traded in this range until May 24, when bears knocked it down to a closing price of $0.454.
But today, the price of XRP gradually fell to the $0.451 level as the bears continue to put pressure on its price.
More Bearish Trend for XRP
XRP is in a downtrend today, forming a second consecutive red candle on the daily price chart with lower lows. The asset is traded under a 50-day period Simple Moving Average (SMA), short-term bearish sentiment. The 50-day SMA indicates the average price of XRP over a certain period.
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Also Relative Strength Index (RSI) is 46.71 in the neutral zone and falling, further confirming the bearish sentiment for XRP. RSI has two critical areas – overbought and oversold. RSI values between 70 and 30 are neutral.
Due to the descending RSI line of XRP, the asset is entering an oversold area from which a trend reversal is imminent.
XRP Moving Average Convergence/Divergence (MACD) it is above its signal line, indicating bullish sentiment. However, the MACD is showing negative readings and its histogram bars indicate a bearish reversal.
MACD identifies the trend direction of an asset and is often used to close trades. It is currently showing a preliminary sell signal in today’s market. But XRP is trading above the 200-day SMA, indicating a bullish trend in the long term.
The altcoin is trading at the $0.4504 support level as bears try to push it lower. Bearish pressure at the $0.46591 resistance level pushed XRP into a downtrend.
On further decline, XRP will return to the $0.44446 support level, pushing it into oversold territory. XRP is likely to see further price declines in the short term.
However, as it is still trading above its 200-day SMA, which is a long-term bullish sentiment, the bulls will rebound once they regain control of its price.
XRP updates can affect price action in the long run
Ripple Labs’ ongoing legal case with the US Securities and Exchange Commission is likely one of the reasons for the decline in XRP prices. However, as Ripple’s CEO said, the case is likely to end soon.
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Attorney at Ripple Labs Kylie Chiseul Kim filed a letter to waive counsel for their ongoing case. The attorney is leaving her former employers Kellogg, Hansen, Todd, Figel & Fredrick PLLC and Devbevoise & Plimpton LLP. However, court filings said the law firm would remain Ripple Labs’ attorney.
Featured image from Pixabay and chart from TradingView.com
