Ripple’s Price Drops 11% Over Three Days, But There’s Positive News for the XRP Community

Summary

• Ripple’s cross-border cryptocurrency recently faced resistance at a multi-month high of approximately $2.7 and has dropped below $2.35.
• Even with this significant decrease in price over just a few days, a particular technical indicator has signaled a potential buying opportunity, suggesting a possible trend reversal.

According to a chart analysis shared by a well-known crypto analyst, the TD Sequential indicator has revealed multiple buying signals on XRP’s hourly trading chart. This indicator helps identify market exhaustion in different directions across various time periods.

This trend followed Ripple’s token’s inability to surpass the $2.7 resistance earlier this week, resulting in a decline to around $2.3, marking a drop exceeding 12% in just a few days.

The price drop coincided with a ruling from Judge Torres that dismissed a joint motion by the US SEC and Ripple aimed at resolving their lawsuit with a settlement of $50 million.

Previously, the analyst noted that XRP faced minimal resistance on its path to $3 and higher. However, concern has been raised regarding the support level of $2.38, which poses a risk for the cryptocurrency if that threshold is breached—an event that occurred in the last 24 hours.

Additionally, a potential bearish indicator is the stagnation in new users on the XRP network, with the daily creation of new wallets reported at just 3,500 recently. In comparison, leading cryptocurrencies like Bitcoin and Ethereum are seeing significantly higher averages of 309,000 and 112,000 new wallets created daily, respectively.