- Jungle Inc 2.0 believes the SEC’s appeal in their Ripple case could lead to another 30-40% drop for XRP.
- Conversely, a bullish scenario may see XRP rise above $0.40, added the analyst.
- At press time, a medium-term descending wedge pattern suggested that XRP could drop in the coming few days.
Cryptocurrency analyst Jungle Inc 2.0 believes that the SEC’s appeal in their case against Ripple (XRP) could have one of two effects on the price of the remittance token. In his tweet posted earlier today, the analyst revealed that in a bearish scenario, he believes XRP’s price could drop another 30%-40%.
Wrong! The appeal is pertaining to Ripple’s sales on exchanges.— Jungle Inc 2.0 (@jungleincX) September 11, 2023
On the other hand, if things take a bullish turn, the analyst predicts that XRP could remain above $0.40. Although there were many XRP stans in the comments claiming that the appeal from the SEC is not necessarily going to happen, Jungle Inc 2.0 remained adamant that it is not a matter of if, but when.
When looking at what XRP’s price did over the past 24 hours, CoinMarketCap indicated that it experienced a more than 3% decline. This left the altcoin trading at $0.4831, which was just above its daily low of $0.4827.
Meanwhile, XRP recorded a 24-hour trading volume of $741,197,882, marking a substantial increase of over 91% compared to the previous day. The drop in the altcoin’s price contributed to a deeper decline in its weekly performance, which stood at -4.50% at press time.
Daily chart for XRP/USDT (Source: TradingView)
From a technical perspective, a bearish outlook is validated given the fact that a multi-week descending triangle pattern had formed on the altcoin’s daily chart. This pattern may result in the remittance token’s price dropping below the $0.4425 support level in the coming week. Furthermore, continued sell pressure could drag XRP’s price down to $0.3480 as well.
However, if XRP is able to close 2 consecutive daily candles above the chart pattern within the next few days then the bearish thesis will be invalidated. In this scenario, the altcoin’s price may attempt to overcome the next key resistance level at $0.5605 in the upcoming week. If this buy momentum persists, then XRP may continue its ascent toward $0.7385.
Investors and traders will want to take note of the fact that the 9-day EMA line was attempting to cross above the 20-day EMA line at press time. If these 2 technical indicators cross, it will signal that momentum has shifted in favor of buyers. Subsequently, XRP’s price may rise in the following 24-48 hours after the 2 EMA lines cross.
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