The past couple of weeks has been a bumpy ride for XRP as the asset has been trying hard to keep its head high. The asset has been trying its best to move into the bullish zone but without any success.
The price chart shows that the asset has been trying to push and break above the resistance level of $0.41. However, things are not turning out to be as favorable as expected by the bulls.
More than one factor is taking a toll on XRP, which is why its trading price has been dragged down. They are not able to move further as the investors do not have the same confidence they did in the past.
The major reason is the latest update from the crypto world that involves XRP and Coinbase. Although Coinbase has clearly explained the situation, things still seem fishy to many investors.
It may take a while before the investors start trusting what Coinbase had to say about its latest move involving XRP. Once the confidence starts coming back, things may start recovering.
XRP’s Current Struggle
Although XRP could be moving in the bullish zone at present, it seems to be facing a downtrend. On November 30, the investors tried their best to push XRP’s trading price over the resistance level of $0.41.
Unfortunately, their efforts were not as fruitful as expected. Despite making several attempts, the bulls could not push XRP past the the$0.41 level.
They kept trying their level best but the asset’s price kept weakening. The battle went on between the bulls and the bears until the next day (December 1) but things did not work out well for the buyers.
After a long battle, the bulls realized that the bears were in no mood to let the bulls take control. Therefore, they would not let them take the overhead resistance level.
XRP Price Slipped
It looks like the bulls have lost their buying confidence after a long battle with the bears. With their buying sentiments going down, the bears have gained the opportunity to launch a selling spree.
They have successfully pulled the trading price of XRP below the 20-day EMA ($0.40). With the trend in their grasp, the bears are bracing for another selling spree.
XRP May Fall to $0.30
This time, the bears are eager to bring XRP down to a low of $0.37. They have already launched a selling attack against the bulls to move them out of their way.
If the selling momentum keeps building up, then the trading price of XRP may fall deeper. In this particular case, XRP’s trading price may plunge below the $0.37 mark.
The technical factors are currently moving in the bearish zone supporting the bears. If they keep backing the bears, they will increase their selling attack and pull XRP to $0.30.
The Upward Movement
For now, the overall trend for XRP is moving in the bearish zone. However, if the bulls form a strong rally, then the trading price of XRP may start moving higher.
The bears may get pushed back from attempting to bring XRP down to $0.37. If that happens successfully, then XRP’s price may start surging significantly.
The bulls may successfully push XRP to a high of $0.43 (50-day SMA) and then go on to hit a higher trading rate of $0.51.
The Positive and Negative Factors in Play
When it comes to the positive factors, XRP is backed by the potential win of Ripple versus the US SEC in the court. Many expect the lawsuit may go in favor of Ripple.
Many companies from the crypto industry have lined up in favor of Ripple, submitting amicus briefs at the court in favor of the company.
Then there is the constant expansion of Ripple across the globe. The platform has expanded its business to Canada, New Zealand, Japan, and Ireland. It is planning to target the gulf region as well.
With more expansion comes more exposure and utility for the XRP token, increasing its demand, thus the surge in value.
Then come the negative factors and the first one is the overall market downtrend that has gotten worse by the FTX collapse.
Then there is Coinbase which recently announced the delisting of XRP alongside other major cryptocurrencies from its wallet support.
Although Coinbase has clarified that the decision was based on the lack of demand for the assets. Still, the announcement was enough to cause fear among the investors, thinking Ripple may lose the case.