Ripple could experience slight relief in the ‘Ripple v. SEC’ lawsuit as the court denied SEC’s request to access the company’s legal memorandum. This turn of events has definitely helped XRP’s value in the spot market. As per the chart, the dropping value of XRP received a boost from $0.7904 and jumped higher on the price scale. At the time of writing, XRP was trading at $1, a crucial price level.
XRP daily chart
Source: XRPUSD on TradingView
After witnessing nearly a 30% surge in the past two days, bearishness of the descending channel had reduced. The value had collapsed by 39% within the channel as the sell-off continued, but the current boost pushed the price higher. However, the price has not yet breached out of the descending channel and the future price movement will depend on whether or not the price can breach this channel.
Reasoning
As the price traded at $1, XRP would require a push to breach out of the current falling channel to test resistance at $1.06. However, this push could coincide with a trend change.
While volatility had remained high, signal line and the 50 moving average were resting above candlesticks. This was a bearish sign as this indicated that the price was in a downtrend already. Even though Visible Range indicator noted that maximum trading in the current period has taken place at $1.35, the current price level was receiving more support from the traders.
However, Directional Movement Index noted that the -DI has crossed over the +DI due to the fall observed on 19 May. This indicated that upward pressure was more prevalent in the market. But, at the time of press, the -DI was pointing at another cross over under the +DI, which indicated that maybe the downward pressure could evolve in the XRP market. Meanwhile, ADX at 28 noted that the current trend had significant strength to sustain.
Conclusion
The current XRP price was witnessing a sudden surge, causing it to once again trade at $1. As the price tried to breach the descending channel, there was a trend reversal also taking shape. If the XRP price fails to breach the channel, the price may witness a fall to $0.74-level.
