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Despite Positive Expectations, The XRP Price Could Drop Soon

Published 11/06/2022, 07:24 AM
Updated 11/06/2022, 07:30 AM
Despite Positive Expectations, The XRP Price Could Drop Soon
XRP/USD
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  • XRP price was mostly kept in the range-bound area because of the Fed’s recent interest rate hike.
  • XRP’s market cap dominance is steadily moving upwards.
  • The technical indicators on XRP’s daily chart suggest that the price of XRP may experience a dip over the coming days.

Ripple (XRP) has been trading in a consolidated range for a while now, but it seems like the altcoin is gearing up for a rally. The XRP price was mostly kept in the range-bound area because of the Fed’s recent interest rate hike which brought negative sentiment into the crypto market.

On the other hand, things are looking good for Ripple when it comes to their lawsuit against the Securities and Exchanges Commission (SEC). Several firms are backing Ripple to prove that the SEC is incorrect in their claims, which has led to bullish surges in the price of XRP.

Adding to XRP’s promise is the fact that the token’s transactions spiked amid the news that the lawsuit is going well. Today already, several large transactions have been recorded, amounting to about 300 million XRP tokens.

In addition to this, XRP’s market cap dominance is also steadily moving upwards. If XRP’s dominance can increase by 20%, we could witness a massive bullish rally that could push the XRP price over $13.28.

XRP/USDT daily chart Source: CoinMarketCap

The technical indicators on XRP’s daily chart suggest that the price of XRP may experience a dip over the coming days. The main technical indicator that investors should pay attention to is the daily Relative Strength Index (RSI) indicator, which is currently sloped negatively. It seems that XRP’s price has already started its descent over the last 24 to 48 hours.

Should the price of XRP continue to fall, it may drop to as low as the EMA 20 level at around $0.4720. If the EMA struggles to hold its support, then it will drop lower to around the 50 EMA level before entering into a consolidation phase.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Despite Positive Expectations, The XRP Price Could Drop Soon appeared first on Coin Edition.

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