Ripple’s XRP is treading carefully as its ongoing upside retracement risks exhaustion and triggering a 65% price crash. The native token gained nearly 30%, climbing to $0.36 on June 24 – just four days after rebounding from its lowest level of $0.28 since January 2021.
At the time of writing this article, XRP was trading at $0.37. It has been up 13% in the last 24 hours, as per data from CoinMarketCap. If the rally continues, the token could extend to $0.41. But a bullish reversal setup meets its profit target at a 61% success rate.
Thomas Bulkowski, a veteran crypto analyst, said it appears XRP’s case falls in the 39% failure spectrum. There’s a conflicting technical signal presented by its 200-4H exponential moving average. Experts believe that XRP’s 200-4H EMA previously served as a strong distribution signal. The token in April 2022 attempted to break above the wave resistance multiple times. But it only faced rejections and fells a massive 65% to $0.28. Similarly, the breakout stalled midway after the token retested the 200-4H EMA as resistance on June 23. XRP anticipates further bias confirmation and risks an April-like price decline.
But the Federal Reserve’s hawkish policy further strengthens XRP’s bearish bias. And there’s a high chance of Ripple winning the lawsuit filed by the US Securities and Exchange Commission (SEC) for allegedly selling unregistered securities. This could negate the bearish setups.