XRP is losing most of its gains, and upward reversal remains unlikely scenario
The price performance XRP showed us a few days ago was really surprising, as the cryptocurrency’s anemic performance showed no signs of an upcoming 70% rally. However, the lack of traction in the market led to a major reversal that most holders did not expect.
Half of what has been gained is now lost
XRP lost more than 20% of its value in the last 48 hours, which is around half of the growth it has shown in the last 30 days. Despite the spike in trading volume, traders and investors were not injecting a significant amount of funds into it. Hence, the asset had no fundamental support beneath it moving up.
Due to lack of volume around local resistance levels, XRP was able to easily break above the 50- and 200-day moving averages, driven by Ripple’s success in court against the SEC.
The volume profile on XRP remains descending as traders do not believe in the continuation of the rally, especially without positive news coming from the courtroom. All of the signs show that the rally we saw previously was purely speculative.
What will happen next?
Unfortunately, it’s hard to predict what’s going to happen in court over the next few days or weeks. However, technical data suggests that XRP will continue its retrace as the asset has already declined below the 200-day SMA and is now moving towards the 50-day SMA at the $0.38 price level.
However, a move upward is still possible if investors see some progress in court and the return of buying power to the market.
