NEW DELHI (CoinChapter.com) — It seems XRP price cannot catch a break from bearish pressure, despite bulls trying their best. After the BTC flash crash of Jan. 3, XRP price was still recovering when a post from the hacked SEC X account sent the market into a tizzy.
What’s worse is that the market upheaval came just a day before the Zakinov vs. Ripple court hearing on Jan. 11, 2024. The Zakinov vs Ripple case is a significant legal battle involving Ripple Labs and XRP holders.
A crucial aspect of this case is the classification of XRP as a security, similar to the SEC-Ripple lawsuit.
Pro Ripple lawyer John Deaton was quick to put the SEC on the stand. Quoting a tweet from crypto favoring US Senator Cynthia Lummis, Deaton demanded that a subpoena be served to the regulatory body.
Ripple’s chief legal officer Stuart Alderoty also took a dig at the regulatory body, stating
Per *its own rules*, w/in 4 days the SEC should disclose the incident’s nature and scope, and the impact on the market along with a description of its processes for assessing, identifying, and preventing such cybersecurity threats
Stuart Alderoty’s post
Yet, a positive decision from the SEC on the Bitcoin spot ETF applications could buoy the entire market.
In addition, co-founder of asset management firm Valkyrie Steven McClurg stated in an interview with Fox Business that an Ethereum (ETH) or Ripple spot ETF in the future would not be surprising.
McClurg’s prediction hinged on the SEC approving the BTC spot ETF, though. The
XRP Price Faces Bearish Technical Cues
Technical indicators forecast a ‘sell‘ signal for XRP on the daily and weekly timeframes. Meanwhile, XRP price has formed a bearish technical pattern called the ‘Descending Triangle.’
The descending triangle is a bearish continuation setup with a falling resistance line that caps upside attempts and a flat support that prevents declines. The height of the triangle’s thickest section determines the price target in a descending triangle setup.
The pattern’s descending trendline resistance rebuffed’s XRP price’s upside attempts. If the triangle pattern pans out, XRP could face a drop of nearly 78% to reach the projected price target near $0.125, theoretically.
XRP Faces Death Cross Threat, But Bulls Are Fighting Back
XRP price action has formed a death cross between its 20-day EMA (red wave) and 100-day EMA (blue wave), which could increase the bearish pressure against the token. However, bulls are fighting back, likely buoyed by rumors of an upcoming XRP ETP.
Positive market sentiment could help XRP price start a rally, which could see the token flipping the immediate resistance near $0.59 and target the 50-day EMA (purple wave) resistance near $0.61.
However, if the selling pressure increases, XRP price could drop to the support near $0.55. Breaching the immediate support level might result in the token’s price testing the support near $0.52 before recovering.
The RSI for XRP remained neutral, with a score of 39.29 on the daily charts.
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