For the most part of 2022, the Ripple-issued XRP token has failed to live up to the standard set in 2021. However, the cryptocurrency has managed to make a noticeable recovery over the past month, leaving investors to wonder about its future price movements.
Indeed, the price of XRP has soared more than 20% over the past month, in spite of being caught in the middle of the widely publicized legal battle against the United States Securities and Exchange Commission (SEC), as Finbold earlier reported.
In fact, it is the recent successes of Ripple’s legal team in this lawsuit that could be partially attributed to pushing the coin’s price upward, with the company’s CEO Brad Garlinghouse suggesting that the whole ordeal could be resolved in the first half of 2023.
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That said, XRP’s price trajectory has been steadily moving in a descending fashion over the past several days, with the decentralized finance (DeFi) asset at press time trading at $0.4552, showing a correction of nearly 7% over the week, as per CoinMarketCap data.
What’s next for XRP price?
Last month’s successes aside, the price of XRP is still well below its 2018 all-time high of $3.40, leaving plenty of open space for the token to strengthen in the next few months, possibly even beyond the $1 mark.
Based on the analysis of the charts, XRP’s strongest support zone currently stands at around $0.43, while the strongest resistance level for the sixth-largest digital asset by market cap seems to be at about $0.50, as the token is currently forming a red candle after a green month in September.
XRP technical analysis
The summary of the one-day technicals aligns with a weak sell sentiment at 11, with neutrality standing at 10 and buy sentiment at five. Further breaking down the technical analysis (TA), oscillators suggest selling XRP at two, whereas as many as nine express neutrality.
As far as moving averages (MA) are concerned, technical indicators point to a slightly stronger ‘sell’ sentiment at nine, versus one showing ‘neutral’, and five going for the ‘buy’ sentiment.
It is also worth noting that XRP is currently trading above both the 100-day and 200-day moving averages, pointing to an easing of the selling pressure and an increase in buying pressure, possibly a good sign for the bulls.
Is a break above $1 to be expected?
Should XRP somehow manage to reach the coveted $3.40, this would represent a massive 647% increase in the price at press time. However, not even Ripple gaining an upper hand in the case against the SEC could lead to such an extreme advance any time soon.
In a more likely scenario, the positive sentiment could continue pushing the token in the upward trend, and it manages to break the $0.50 resistance. In such a case, it would be safe to assume that the increased buying pressure would lead to more bullish gains, perhaps even toward $1 and beyond.
On the other hand, the price reversal below the support level could spell trouble for the XRP community that isn’t very bullish on the token’s price, to begin with. According to an earlier TA by the crypto trading expert Ali Martinez, such a move could pave the way for bears as XRP was displaying a ‘sell signal’ based on the TD Sequential.
That said, besides the ongoing lawsuit, the future price of XRP remains largely tied to the overall market conditions in the cryptocurrency sector and the prevailing macroeconomic situation that in itself is dependent on numerous related factors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
