After a significant ruling on July 13 that declared XRP as not a security by nature, the XRP price saw a historic surge. However, recent times have seen this jubilation gradually fade, with XRP surrendering a significant portion of its gains due to XRP profit-taking.
Profit-Taking Impacting XRP Price
Bill Morgan, a lawyer and XRP enthusiast, highlighted the current wave of profit-taking, stating, “The Torres decision was so monumental that the entire market, including Bitcoin, surged that day. Yet, the only cryptocurrency to gain legal clarity was XRP. If individuals choose to sell their non-security XRP under such circumstances and reap profits, that’s their choice. It’s not a choice I would make.”
As a result of this profit-taking, the XRP price has seen a nearly 33% drop, less than a fortnight after the legal verdict. XRP reached a peak of $0.932 on July 13, marking a rally of over 100% following the landmark ruling.
Chance for Recovery
Despite this, the fifth-largest cryptocurrency still has a chance to limit the damage before it breaches another critical XRP support level. As of this writing, XRP has seen a 5.20% drop in the last 24 hours, standing at $0.625, and an 11.92% drop over the last week.
Notably, XRP is barely above the significant daily MA 50 at $0.60, which could potentially determine the cryptocurrency’s future.
What Lies Ahead for XRP?
The most crucial test would be for XRP to maintain support at the $0.584 to $0.60 range. XRP confirmed resistance near this level in April of this year, specifically around the $0.584 mark. If XRP can establish this range as a support level, it may halt further declines, at least in the short term.
Meanwhile, cryptocurrency analysts have spotted an intriguing development on the XRP chart: a bullish divergence. This occurs when prices drop to a new low, while an oscillator, usually the RSI, does not. This indicates that bears are losing strength, and bulls may be gearing up to regain control, often signalling the end of a downtrend.
However, if the bulls fail to maintain the $0.60 level as a support, XRP could risk losing all gains made post the July 13 ruling. In this scenario, XRP could revert to its previous range, with support and resistance at $0.487 and $0.584, respectively.
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