XRP was trading at $ 0.255 with a market cap of $ 11.6 billion, at the time of publication. After the SEC lawsuit, the price of crypto remained more solid than usual. Failure to respond to this bull run could be embarrassing for XRP holders. At the time of going to press, the token was showing little volatility and constant selling pressure, two aspects that were pushing the price to its immediate support levels.
Further downsides to XRP would be likely if there were no positive developments around the ongoing trial.
4 hour XRP chart
The 4-hour XRP chart highlighted the price following the downtrend line, symbolizing the lower buying pressure in the market. Continuing this operation will cause the horizontal / curved support to collapse. This will cause the price to drop to the next support at $ 0.2081. This drop would be an 18% drop in value from that of XRP at the time of publication. Over time, the price will become more and more constrained and will be forced to escape.
The RSI indicator has noted a rebound from the oversold zone. However, if the selling pressure continues, it is likely that the RSI could dip into the oversold zone.
The OBV indicator paints a picture quite similar to the RSI. And he suggests a drop in the buying / selling pressure. Which may explain the reduced volatility.
The MACD indicator also reflected the lack of volume and momentum. The MACD and Signal lines moved closely with each other. However, since the lines were both less than zero. This showed that the selling pressure, however small, was dominating XRP.
Conclusion
Continuing this trend would lead to a tightening of the price range, which would result in reduced volatility. A breakout south from here would push the price down to $ 0.2081, the first immediate support XRP will encounter. A break of this level would cause XRP to drop a total of 23% from its level at press time to $ 0.1956.
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