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The recent price fluctuations of XRP have placed the asset at a complicated point. With the recent successful conclusion of the ongoing legal dispute between Ripple and the SEC, XRP now has no fundamental reasons that would hold it back. But the market is still not strong enough, and there are three possible paths for XRP's next move.
Scenario 1: Bullish breakout to $3
A rise toward $3 becomes a feasible goal if XRP is able to overcome the descending resistance level. A key factor that might spur this rally is the settlement of Ripple's lawsuit against the SEC, which would draw in institutional investors and traders who had been wary because of regulatory uncertainty. Technically speaking, a break above the $2.60-$2.70 range would validate bullish momentum and pave the way for a move toward $3. For this move to be maintained, volume must rise noticeably.
Scenario 2: Consolidation
The entry of XRP into a phase of sideways consolidation between $2.20 and $2.60 would be a more neutral outcome. The fact that the asset has tested the $2.20 support zone multiple times indicates that buyers are still there.
Alex DovbnyaA prolonged period of low volatility is more than a possibility due to the lack of liquidity on the market. If XRP is unable to break major resistance levels, there are some crucial supports that will let it hang and create a period of consolidation while it gains power for future moves.
Scenario 3: Bearish decline below $2
Even with encouraging legal developments, XRP is still susceptible to general market declines. In the event of a correction of Bitcoin or the larger cryptocurrency market, XRP might not be able to maintain its critical support levels. Concerningly, a decline below $2 might lead to panic-selling and push the market down to lower levels, like $1.80 or even $1.50.
The 200-day EMA serves as the final significant barrier against a further decline; if it is breached, the bearish scenario takes precedence. What happens to XRP in the near future is mostly determined by how the market responds to the settlement of the SEC case. Although hesitancy or weakness on the external market could cause consolidation or even a breakdown below $2, a strong push above important resistances could send it soaring to $3.
Vladislav Sopov
Dan Burgin