opened May with a decent price rebound after falling 28% in April, its worst monthly performance since June 2021. Furthermore, the XRP/USD pair shows prospects of continuing its recovery trend in the coming weeks.
Support confluence raises XRP bullish prospects
XRP’s price rose by nearly 6.25% in the first two days of May, going as high as $0.63 (data from Binance). The buying sentiment surged around $0.58, a level that acted as strong support in January 2022 and enabledthereafter.
Interestingly, the $0.58-support coincides with XRP’s 200-week exponential moving average (200-week EMA; the blue wave in the chart below).
It also serves as the lower trendline of a broader descending triangle pattern, a bearish indicator.
But with XRP’s price bouncing from a confluence of support levels, its likelihood of retesting the triangle’s upper trendline is high. That would have the token test levels above $0.75 — up nearly 30% from today’s price — as their next resistance target in Q2/2022.
Buy the rumor
XRP has emerged as a speculative vehicle for traders looking to benefit from the ongoingcase.
In December 2020, the U.S. Securities and Exchange Commission (SEC)for conducting illegal securities sales via XRP. Nonetheless, recent hearings indicate that the case has for Ripple.
Majority of Ripple partners & volume exists outside of US
«already operating in worst case scenario»
SEC case going exceedingly well
Look at the Ripple Advisors & Board (e.g. 43rd US Treasurer, Former CFTC Chair, and now Michael Barr — Ripple Advisor…)
— Kevin Cage (@Kevin_Cage_)
The SEC vs. Ripple case has dampened buying sentiment in the XRP market, given it is the only veteran token in the top-ten that has been unable to beat its 2017-2018 bull market highs. But analysts believe that Ripple’s win would drastically improve XRP’s upside prospects.
«XRP investors could benefit immensely if Ripple is victorious in the war,»Practical Crypto Capital, analyst at SeekingAlpha, albeit adding:
«Holders must watch for the news and be prepared; based on the examples from the past year, we can probably expect the gains to rapidly peak and then decline.»
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