It is important to note that, like many other altcoins, including ETH, XRP is currently testing the previous support that has since turned into resistance due to the market-wide price decline that followed the FTX collapse. According to IncomeSharks, the altcoin could see a big rise if they breach the threshold.
Notably, the cryptocurrency fell over the weekend after its bullish price movements stalled the previous week. After printing a loss of more than 2%, the alternative coin fell as low as $0.3876.
According to Eager Crypto, if XRP flips Fib 0.786 (0.40 to 0.39) into support, it will rise to Fib 1, which is currently at 0.75.
Image source: https://twitter.com/egragcrypto/status/1599652076908253185
Around $0.42 is where there is a lot of resistance for XRP. Notably, a breakout past these levels might cause the cryptocurrency to surge to $0.5 highs before the FTX collapse.
However, according to a Friday study by seasoned price action expert Duo Nine, this may not be likely for XRP. As volumes decline and the daily time frame indications curve lower, the analyst predicts that the altcoin may instead continue to consolidate well below the $0.40 price level. The analyst warns that XRP faces a 21% loss to $0.31 if the price keeps moving downward.
The altcoin movement is still being restrained by macroeconomic factors and rate increases, just like the whole crypto market. Nevertheless, it might uncouple based on how the US Securities and Exchange Commission’s lawsuit against Ripple is regarded.
Incidentally, both parties’ reply papers were submitted last Friday with redacted versions from both parties. Therefore, the weekend decline could be seen as a sign of ongoing uncertainty. However, it is important to note that several Ripple supporters anticipate a sharp increase in the token’s price if Ripple triumphs.
In contrast to other significant crypto assets, XRP reached its all-time high in January 2018 at $3.40. The legal dispute with the SEC, which resulted in numerous US exchanges delisting the coin in December 2020, is identified by many XRP holders as the reason for this.
According to information from CoinMarketCap, at the time of publication, the price of XRP is $0.3938, up 0.84% in 24 hours and 2.88% in the last seven days.