XRP has been consolidating in a descending channel on the 4-hour chart. The cryptocurrency has been forming lower highs and lower lows, indicating a bearish trend. The recent rejection at the 200-day moving average has further strengthened the bearish sentiment.
However, the current price action suggests that XRP may find support at the lower trendline of the descending channel. If the cryptocurrency manages to bounce off this support level, a retest of the upper trendline at around $0.38 may be expected.
Source: TradingView
Fundamental Analysis
XRP has been facing regulatory challenges in the United States, which has affected its price performance. The Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple, the company behind XRP, alleging that the cryptocurrency is a security and not a currency.
This has led to several exchanges delisting XRP from their platforms, causing a significant drop in trading volume. However, Ripple has been fighting back against the SEC’s allegations and has recently won a discovery motion, which could potentially help its case.
Conclusion
XRP’s mid-term outlook will be determined by a breakout from its multi-month triangle pattern. The current price action suggests a bearish trend, but the cryptocurrency may find support at the lower trendline of the descending channel on the 4-hour chart. The regulatory challenges faced by Ripple in the United States continue to affect XRP’s price performance, but the recent discovery motion win could potentially help its case.
