SEC-battled XRP trades in the red zone despite other top coins enjoying significant gains as the crypto market finally gets some breathing space. October started out rough for top coins despite the month being known as favorable for the market. Most top coins traded in the red zone, while others, including XRP, suffered massive volatility.
The Uptober spirit seemed to fall on XRP the day before when it recorded some gains. However, the momentum didn’t last long as XRP is now down 1.44% in the last 24 hours. There is still hope for XRP thanks to bullish news from its ongoing case with the SEC. With more firms signing up as amicus curiae, the bulls might leverage this advantage to push the XRPs price further.
XRP Trades Red Amid Rough Week
The cryptocurrency market had a rough start to the week. But while most top coins have experienced measurable turnarounds, XRP has been left behind. XRP is currently trading at $0.45, representing a decrease of about 1.44% over yesterday’s close. This adds to its rough 7-day chart that sees XRP losing almost 5.17%.
XRPs daily loss is still a sign that the bears have not given up yet. There might still be some fighting left before the end of the month. However, if there is any good news coming down the pipeline, we will see XRP continue to climb higher.
XRP Falls Back To $0.45 Support Line
XRP tried testing new resistance lines the day before but fell back to its $0.45 support level. The coin tested $0.47 yesterday, the first time since last Thursday that it reached this level. However, it failed to break through, instead falling back to $0.45.
XRP is currently trading around $0.46. | Source: XRPUSD price chart from TradingView.com
Resistance is Still Present Despite The Breakout Past The Trendline
Just before the time of writing, the trendline resistance (white) of the previous 10 days was broken. But the $0.45 area was a formidable zone of support and resistance in the short term. Also, the short-term structure of the market was due for a correction.
Even yet, the RSI reading has gone over 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 substantial capital input was observed at lower time intervals.
On the daily chart, the market structure remained bullish. But if the market ends the day at less than $0.44, that would change. Highs for XRP between May and September were at the $0.422 mark. Thus, a return to this zone may trigger a powerful bullish reaction. However, if Bitcoin had a sharp decline below $18.6k, XRP’s value would most certainly drop below $0.42 as well. In light of this, the price of the coin may drift gradually lower, potentially reaching $0.34 in the coming weeks.
Featured image from Pixabay and chart from TradingView.com