After experiencing a decline over the weekend, the leading altcoin (XRP) could experience a consolidation just below $0.40 this week.
At press time, XRP is trading at the $0.3938 price point, up 0.84% in the last 24 hours and 2.88% in the last seven days, according to data from CoinMarketCap.
It bears mentioning that the crypto experienced a drop over the weekend after seeing its bullish price moves stall last week. The altcoin dropped as low as $0.3876 after printing an over 2% loss.
Like many other altcoins, including ETH, it is worth noting that XRP is currently testing the previous support-turned-resistance following the market-wide price plunge in the wake of the FTX collapse. IncomeSharks predicts that altcoins could experience a significant rally if they break the level.
$ALTS – A lot of setups looking like this, $ETH included. Nice and steady trend up, nice engulfing V bottom with higher lows. Knocking on resistance, when this breaks we finally see alts have a little fun. pic.twitter.com/WvB1evBYQO
— IncomeSharks (@IncomeSharks) December 5, 2022
Eager Crypto informs that if XRP Flips Fib 0.786 (0.40$ to 0.39$) into support, it will shoot up to Fib 1, present at 0.75$.
For XRP, the significant resistance is around the $0.42 price point. Notably, a break past these levels could see the altcoin run up to pre-FTX collapse highs of $0.5.
However, per an analysis from Duo Nine, a seasoned price action analyst on Friday, this may be unlikely for XRP. The analyst instead predicts that the altcoin could continue to consolidate just below the $0.40 price point as volumes decrease and daily time frame indicators curve lower. Meanwhile, if the price continues to trend lower, the analyst says XRP risks a 21% drop to $0.31.
The altcoin continues to move in tandem with the overall crypto market constrained by macroeconomic conditions and rate hikes. However, it could decouple depending on perceived outcomes from the US Securities and Exchange Commission case against Ripple.
Notably, both parties submitted redacted versions of reply briefs from both parties last Friday. Consequently, the weekend slide may be interpreted as a sign of continued uncertainty. However, it is worth noting that several Ripple supporters expect the price of the token to experience a massive surge in the case of a Ripple win.
Unlike other major crypto assets that formed all-time highs in 2021, XRP’s all-time high was in January 2018 at $3.40. Several XRP holders believe this is because of the legal battle with the SEC that forced several US exchanges to delist the token in December 2020.