XRP is in red nowis losing grip on its recent gains as bears move its price. Bulls sustained price momentum that pushed XRP to $0.4688 on May 19. The asset traded within this range until May 24, when bears dropped it to a closing price of $0.454.
But today, the price of XRP has gradually decreased to the $0.451 level as the bears continue to put pressure on its price.
More Bearish Trend For XRP
XRP is in a downtrend today, forming a second consecutive red candle on the daily price chart with a lower low. The asset is trading below its 50-day low Simple Moving Average (SMA), a short-term bearish sentiment. The 50-day SMA shows the average price of XRP over a certain period.
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Also, the Relative Strength Index (RSI) is 46.71 in the neutral zone and descending, further confirming a bearish sentiment for XRP. The RSI has two critical regions the overbought region and the oversold region. RSI values between 70 and 30 are neutral.
Due to the downward trend line of XRP’s RSI, the asset is entering the oversold region where a trend reversal is imminent.
XRPs Moving Average Convergence/Divergence (MACD) is above its signal line, suggesting a bullish sentiment. However, the MACD shows negative values, and its histogram bars indicate a bearish reversal.
MACD indicates the trend direction of an asset and is often used to place trades. For now, it shows a tentative sell signal in the market today. but XRP is trading above the 200-day SMA, suggesting a strong long-term trend.
The altcoin is trading at the $0.4504 support level as bears look to push past it. Bearish pressure at the $0.46591 resistance level is pushing XRP into a downtrend.
A further decline would see XRP return to the $0.44446 support level and push it into the oversold region. XRP is likely to record significant price declines in the short term.
However, since it is still trading above the 200-day SMA, a long-term bullish sentiment, the bulls will rally again once they regain control of its price.
XRP Updates May Influence Price Action Long Term
The ongoing legal case of Ripple Labs with the US Securities and Exchange Commission is probably one of the reasons for the drop in the price of XRP. However, as the Ripple CEO said, the case may end soon.
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Attorney at Ripple Labs Kylie Chiseul Kim filed a letter of withdrawal as legal counsel in their ongoing case. The Attorney left his former employers, Kellogg, Hansen, Todd, Figel & Fredrick PLLC, and Devbevoise & Plimpton LLP. However, the court filings stated that the law firm will remain counsel for Ripple Labs.
Featured image from Pixabay and chart from TradingView.com