XRP is trading at $0.5131 with a bearish bias, down 2% over the last 24 hours. The payment token has displayed a sideways price action over the last 11 days with the $0.5 psychological level offering support.
Ripple has been on a downtrend since the US Securities and Exchange Commission (SEC) made it clear that it would appeal Judge Torres’ ruling that XRP is not a security when sold to investors on exchanges.
Despite this grim experience, there has been some positive news from the social media front with the Ripple CTO exciting the XRP community with his tweet. On August 24, David Schwartz, Ripple Labs’ Chief Technology Officer (CTO) and Co-Creator of the XRP ledger, posted on X what appeared to be a coded message reading, “277,777,788,888,899 is the smallest number that goes to 11.”
277,777,788,888,899 is the smallest number that goes to 11.
— David “JoelKatz” Schwartz (@JoelKatz) August 23, 2023
While no one understood the meaning of Schwartz’s tweet, it set the XRP supporters speculating what that means. Many said that it could mean that XRP has the potential to reach $11, which would be 4x times its all-time high.
Many, however, remain puzzled about what it could mean. However, it became clear that it was some attempt to mobilize Ripple’s price.
A Death Cross Could Send XRP to $0.4106
XRP price had formed a descending parallel channel on the daily chart below. At the time of writing, the price was fighting immediate resistance from the upper boundary of the channel at $0.5233. Note that a daily candlestick close below this level would mean that the token remains within the confines of the falling channel.
Increased overhead pressure could push XRP lower to seek solace from the middle boundary of the prevailing chart pattern at $0.47 or to the psychological level at $0.45. A drop lower could bring the areas around $0.4106 into the picture, where the lower boundary of the descending parallel channel sits.
Such a move would represent a 20% drop from the current price. This could be where the downside could be capped for the cross-border remittance token given that the price has not traded below this level since March this year.
XRP/USD Daily Chart
Supporting this gloomy outlook for XRP was the appearance of a death cross on the daily chart. This is a call to sell XRP that took place during the early Asian trading hours on Monday when the fast-moving 50-day Simple Moving Average (SMA) crossed below the slow-moving 200-day SMA. This suggested that the downtrend was still strong.
Also supporting this bearish thesis were the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator which were moving within the negative region. The price strength at 32 reinforced the bears’ grip on the price.
On the upside, the balancing of the RSI above the oversold region suggested that the buyers were aggressively defending the $0.5 demand zone. Increased buying from this region could see the rise above the descending parallel channel at $0.5233, confirming a bullish breakout.
A daily candlestick close above the $ 0.56 level, where both the 50-day and 200-day SMA lie, would confirm a decisive move on the upside. The recovery could be halted at the $0.63 level, embraced by the 100-day SMA.
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Source: https://www.analyticsinsight.net/ripple-price-prediction-xrp-at-risk-of-20-losses/