Market

XRP could drop to $ 0.6 if this support is lost

XRP price plunged into the red on Sunday, suggesting a negative start to the new week as the weekend craze in the crypto space seemed to dissipate. The crypto king Bitcoin is struggling to regain the $ 50,000 level while Ethereum is defending the $ 4,000 level.

Following the December 4th cash flash, XRP price has entered a phase of consolidation with sellers lurking at $ 1.

Investors continue to evaluate the developments surrounding the lawsuit initiated by the US Securities and Exchange Commission.

Raoul Pal, former CEO of Goldman Sachs, said Friday that the legal battle between the SEC and Ripple has made XRP very attractive for investment.

“I bought it because: a) it is widely adopted and used, and b) the lawsuit has an attractive win / loss ratio of around 10/1,” said Pal.

Daily chart outlook

XRP is aiming to retest the critical support line at $ 0.79 after bouncing off it yesterday.

The Relative Strength Index (RSI) is falling towards the oversold area but remains below the midline. This shows that the aforementioned strong support zone could be at risk in the near future.

If the bears break this vital support on a daily close, a sharp sell-off towards the December 4th low of $ 0.62 cannot be ruled out.

Additionally, the December 6th low of $ 0.7494 will act as minor support.

XRP / USDT daily chart | Source: TradingView

On the flip side, the XRP bulls will have to find a strong hold above the Saturday high of $ 0.8449 to continue the rebound towards the 21-day SMA at $ 0.9236.

The next major resistance can be found in the $ 0.95 to $ 1 zone, where the 200-day SMA and psychological barrier are protecting.

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