In the last 24 hours, XRP holders have been surprised by the positive news from the fundamentals. The Ripple Foundation will claim that the SEC failed to inform XRP of a possible violation of U.S. law.
As a result, the SEC's action against Ripple's fair affirmative defense was rejected. The following analysis is intended to speculate on how prices will react to this news.
Technical Analysis of Grizzly Bear Market
Daily K-line chart
Ripple (XRP) is one of the cryptocurrencies that will form higher lows after the cryptocurrency market begins its consolidation phase in January 2022.
Although yesterday's news pushed prices up more than 10%, one should be skeptical given the high volatility of the market and the failure of a major support level that is now turning into resistance.
Initially, XRP failed to break its dynamic resistance (marked in blue on the chart below). Next, static resistance at $0.9-1, which intersects the 200-day line, has become a major obstacle for XRP.
On the other hand, the $0.7 and $0.6 demand areas can be seen as areas where prices are likely to gain strong support in the near term.
4 hour chart
Following yesterday's news, price broke out of the symmetrical triangle and is now forming a retracement pattern. This can be seen in the following 4-hour timeframe
If macro does not disrupt the overall cryptocurrency market, a retest of the $0.85 static zone is possible. The MACD indicator reaching bullish territory maintains this short-term positive momentum.
With the recent events favoring Ripple, buyer FOMO appears to be driving the recent 10% daily increase. That said, given the current market uncertainty, short-term speculators should enter with caution. Any sudden fluctuations in the bitcoin market could change everything, especially when trading volumes are near multi-month lows.
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TradingView's cryptocurrency K-line chart.