SEC-fighted XRP trades in the red even as other top coins are seeing significant gains as the crypto market finally gets some breathing room. October got off to a bumpy start for top coins, despite what was known as a benign month for the market. Most of the top coins have been trading in the red while others, including XRP, have suffered from massive volatility.
The uptober spirit seemed to drop on XRP the day before as it posted some gains. The momentum didn’t last long, however, as XRP is down 1.44% in the past 24 hours. There is still hope for XRP thanks to the bullish news from the ongoing case at the SEC. With more companies signing up than friend of the courtthe bulls could use this advantage to push the XRP price further higher.
XRP is trading in the red in a difficult week
The cryptocurrency market got off to a rocky start to the week. But while most top coins have seen measurable turnarounds, XRP has been left behind. XRP is currently trading at $0.45, down about 1.44% from yesterday’s close. This contributes to its rough 7-day chart, which shows XRP losing almost 5.17%.
The daily loss of XRP is still a sign that the bears have not given up yet. There could still be fighting by the end of the month. However, if there is good news in the pipeline, we will see XRP continue to climb higher.
XRP falls back to the $0.45 support line
XRP attempted to test new resistance levels the day before but fell back to its $0.45 support level. The coin tested $0.47 yesterday, the first time it has touched this level since last Thursday. However, it failed to break out, instead falling back to $0.45.
XRP is currently trading around $0.46. | Source: XRPUSD price chart from TradingView.com
Resistance is still in place despite breaking above the trendline
Just before press time, the trend line resistance (white) of the last 10 days has been broken. But the $0.45 area was an impressive zone of support and resistance in the short-term. The short-term structure of the market also needed correction.
Despite this, the RSI value has risen above 50, which indicates that the relative strength is increasing. Coincidentally, the Chaikin Money Flow (CMF) indicator has been positive for over a week. This indicated that significant capital deployment was being observed at shorter time intervals.
On the daily chart, the market structure remained bullish. But if the market ends the day below $0.44, that would change. The highs for XRP between May and September were at the $0.422 mark. Therefore, a return to this zone can trigger a strong bullish reaction. However, if Bitcoin had a sharp drop below $18.6k, XRP’s value would certainly drop below $0.42 as well. With this in mind, the price of the coin might gradually drop lower, possibly reaching $0.34 in the coming weeks.
Featured image from Pixabay and chart from TradingView.com
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