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During Tuesday’s Asian trading session, the XRP/USD pair failed to stop its previous session’s downward rally and remained depressed around the $1.04461 level. Since the beginning of the week, the coin has been flashing red. The cause of its sharp decrease could be linked to the recent bearish rally in bitcoin, the world’s largest cryptocurrency.

Ripple CEO Brad Garlinghouse on the SEC

The lawsuit brought by the US Securities and Exchange Commission (SEC) against Ripple is expected to be resolved next year. Ripple CEO Brad Garlinghouse believes the Securities and Exchange Commission’s (SEC) case against XRP will be resolved by next year.

“We’re seeing really excellent development despite a slow-moving judicial procedure,” the executive explained. Thus, these positive remarks had a positive impact on the RP prices and helped limit the losses.

Negative Waves in the Crypto Market Weigh on XRP

Since the beginning of the week, the crypto market has been flashing red. The downward trend in Bitcoin prices is evidence of this. Bitcoin is struggling to recover above $57,500, and failed to gain strength to move above the $57,500 and $58,000 levels. Thus, there are increasing odds of falling below $55,000 in the near future.

Ripple’s price, like Bitcoin’s, shows signs of continued weakness ahead. The negative wave in the crypto market was considered one of the primary factors that kept the XRP/USD pair lower.

XRP/USD Slips to 1.04 Amid a Stronger Dollar

The broad-based US dollar bullish bias puts some additional burden on the XRP/USD pair. The positive progress on Ripple’s network, on the other hand, aids the XRP/USD in limiting its further losses. At this time, the XRP/USD pair is trading near the 1.04392 level.

On the other hand, the purchasing bias surrounding the broad-based US dollar was considered one of the primary factors that put pressure on XRP/USD. The US dollar extended its early-day bullish rise, rising significantly against its major counterparts on the day following Jerome Powell’s re-appointment as Chairman of the US Federal Reserve.

Apart from this, the Republic of Palau wants to learn more about digital currency and has chosen Ripple as the ideal partner to collaborate with on a government-backed USD-pegged stablecoin. This news also helped Ripple’s prices cap losses.

Ripple Technical Outlook – Trading a Descending Triangle.

On the 2-hourly timeframe, XRP/USD has formed a descending triangle pattern, supporting Ripple at $1.02. However, the 20 and 50-day simple moving averages are providing resistance at the 1.0782 level. Lately, XRP/USD has closed with a bearish engulfing candle, signaling a strong bearish bias among investors. Moreover, the formation of candles below 20 and 50 SMA supports a selling bias.

Still, the breakout of the 1.0782 resistance level could drive a bullish trend until the 1.10 and 1.1251 levels. Let’s keep an eye on 1.020 for a buy trade and 1.10782 for a sell trade. Good luck!

(Excerpt) Read more Here | 2021-11-23 23:40:18


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