- XRP has been comparatively stable over the past couple of days, but has now entered a phase of volatility.
- The current lawsuit of Ripple Labs with the SEC is still the main reason for attention and caution among the traders.
- The coin’s mixed signal from both technical indicators and regulations makes it difficult to understand the future of XRP.
The native token of Ripple Labs, XRP, is currently facing strong pressure in the cryptocurrency world. Analysts are cautiously monitoring the critical phase ahead. Although the coin has been comparatively stable over the past couple of days, it has now entered a phase of volatility. The coin is currently trading at $2.86, declining at a rate of 4.01%, with a volume of $8.66 billion and a market cap of $171.24 billion.
Technical Indicators Point to Key Support Levels for XRP
From a technical side, the coin is nearing critical levels that can fully determine the cryptocurrency’s future. The coin is currently experiencing resistance at $2.9944 (yellow) and can reach up to $3 if it goes beyond that. It also has a support line at $2.8023 and can plummet to $2.7500 if the value breaches more than that.
According to the data provided by TradingView, the Moving Average indicator suggests a bearish momentum for the altcoin, since the MA line is above the candlesticks. The Moving Average Convergence Divergence indicator also shows that the coin is facing a bearish momentum cause the signal line (orange) is above the MACD line. Trading volumes and the coin’s momentum can be critical in this stage for XRP.
Ripple’s Legal Battle Remains a Key Uncertainty
The current lawsuit of Ripple Labs with the SEC is still the main reason for attention and caution among the traders. The allegation against Ripple is that its sale of XRP is considered a sale of unregistered securities. The court proceedings and verdicts have left investors and analysts in a mixed emotion.
A ruling siding with XRP from the side of the court can increase its price levels tremendously. Analysts say that this lawsuit makes it difficult for the coin to grow in the market.
Also Read: The Twin-Token Phenomenon: How XRP Tundra Silently Disrupted Cryptocurrency Presale Models
Investor Sentiment and Outlook
Even though analysts are asking to be cautious on the coin, 88% of traders expect a bullish momentum from the coin. While the rest 12% doubt a bearish trend is happening. With the effort of Ripple on expand partnerships and cross-border payments, the coin can almost carry forward the belief of 88% of investors.
According to the data provided by CoinCodex, the altcoin might have an average price of $2.97 and a maximum price of $3.25 with a potential ROI of 13.01%. The coin’s mixed signal from both technical indicators and regulations makes it difficult to understand the future of XRP. All these factors will drive the coins coming weeks.
Also Read: XRP Price Targets $3.3 Breakout After Support Retest and Adoption
