- Ripple retraces over 50 percent after massive gains.
- XRP bulls must protect the $0.34 critical level to avoid dipping further.
- Successfully closing the day above $0.40 could see XRP/USD rise towards $1.0.
Ripple Price Prediction: General price overview
Ripple price action surged by more than 50 percent to $0.75 in what is suspected to be an organized price pump, only to shed over 50 percent a couple of hours later. The XRP/USD pair flashed a bullish flag since the latter stages of the previous week, over the weekend, and yesterday on February 1. This was an ideal consolidation for the XRP community, with the cryptocurrency surging past $0.50 to hit $0.758 for the first time this year.
Ripple is currently hovering above $0.38 after the sharp decline from the 2021 high of $0.758. The bulls hoped for support at $0.70 and $0.40; however, the support failed to hold. Ripple started the day trading at $0.370. So far, the Ripple price action has ranged between $0.3401 — $0.3960.
XRP boasts a trading volume of $32.6 billion over the last 24 hours, and its value has declined by 34.23 percent over the same timeframe. At press time, the Ripple XRP is trading at a market price of $0.3711.
Ripple Price Prediction: XRP/USD 4-hour chart
The convergence and divergence of the moving average continues to solidify the bearish perspective, particularly when the MACD indicator has crossed below the signal line. Simply put, achieving previous price highs will be an uphill task, and the Ripple price is expected to drop even further before the bulls regain control of the price action.
Ripple Price Prediction: Conclusion
From a positive perspective, the XRP/USD pair could recommence the bullish trend if its price closes the day, trading above the $0.40 crucial resistance. A move past $0.40 would attract more buyers in anticipation of another bull run, which might drive the cross-border cryptocurrency price towards $1.0.
Looking upwards, the next resistance lies at $0.40, followed by $0.450, $0.50, and 2019’s high of $0.560. If Ripple price pushes further upwards, more selling pressure can be experienced at $0.5710, $0.6090, and the latest 2021 high of $0.750.
As per a report by Coindesk, the XRP/USD pair’s recent surge was likely pushed up after traders demanded investors to “pump and dump” on significant messaging platform Telegram. The move appears to be an effort to emulate the latest increase in the price of shares of shorted firms such as GameStop and ‘meme coin’ Dogecoin. Over the last couple of days, GameStop shares soared by more than 300 percent to reach $325.
Ripple has faced tremendous pressure over the last few weeks after the U.S. The Securities and Exchange Commission (SEC) initiated an investigation and filed a lawsuit against Ripple and its executives. The SEC argues that contrary to other cryptocurrencies like BTC, ETH, or LTC, XRP is a security. For this reason, several crypto exchanges opted to withdraw their support or paused the trading of XRP on their platforms. The embattled blockchain has recently responded to the SEC over the alleged accusations.