XRP Might Offer a Selling Opportunity in Coming Days

In response to recent signs that Ripple's legal battle with the United States might be coming to an end, XRP momentarily surpassed $0.5 during its relief surge. After a protracted period of underperformance, XRP has just staged a comeback. If Ripple defeats the US SEC, the Ripple community would like to believe that past setbacks have been overcome.

Let’s explore the current market situation, and we will move into the technical analysis later.

Current Market Outlook of XRP

The data from CoinMarketCap reveals that XRP has become immune to the bearish and bullish cycle of the market. As of now, the asset is trading around the $0.43 price mark with a little change from its last day. With a loss of more than 20%, the 24 hours trading volume of the XRP has tanked to a $1.94 billion price level. 

Despite the recent antics of the bears, XRP has been unaffected by the generally gloomy market sentiment. Most market observers are in awe of the asset's resiliency to the effects of the current unfavorable macro environment.

CoinMarketCap

XRP has increased by an incredible 28% over the previous week, making it the only risk asset in  the 25 most valuable cryptocurrencies and putting it among the best-performing top assets over the past seven days.

Let’s analyze the reason behind this resilience of the asset. After this, we’ll see how XRP might offer a selling opportunity in the coming days. 

What’s the Reason? 

The recent relief rally was highlighted by XRP's rise to $0.5 as a result of recent motions filed separately by Ripple and the SEC to end the 2-year legal dispute. ZyCrypto noted that Ripple Labs filed a motion for Summary Judgment, claiming that the SEC had failed to present evidence demonstrating that XRP is a security.

A motion for judgment as a matter of law was made by Ripple against the SEC. The Securities and Exchange Commission's assertion that XRP is an investment contract is not supported by enough evidence, according to the American technology business.

XRP is Bullish on the 1H Price Chart, But

A broader period, the 4-hour, revealed a bearish market structure. The price struck a lower high earlier this week at $0.5 and dropped below the $0.47 level. Consequently, a bearish bias can be taken on a shorter timescale, as the one hour.

At $0.456 and $0.437, two short-term critical levels have been highlighted. It is expected that XRP will soon turn the lower level to resistance as well, as it was highlighted in white.

   TradingView

Although the RSI was above neutral 50 and did not yet exhibit a significant positive momentum, the 21- and 55-period moving averages displayed bearish momentum.

A few days ago, the faster SMA created a bearish crossover. Additionally, during recent trading hours, the 55-SMA acted as resistance close to the $0.456 level.

The resistance at $0.45 could push XRP lower on the charts once more as a result of the negative H4 structure. A low-risk short trade might be started by retesting the $0.45 area. An hourly session close over $0.46 would be evidence against this theory; however, the $0.422 level can be used to lock in profits.

Funding Rate Hinting XRP Might offer a Selling Opportunity

According to data from Santiment, Binance's financing rates have declined over the previous week. This indicated that the funding charge for long positions was being paid hourly by short positions. In turn, it was implied that a larger portion of the futures market was positioned bearishly. The long-short ratio measure for Coinglass likewise showed a modest advantage for the sellers.

Santiment

Selling XRP is not necessary in response to negative funding rates alone, and market participants may not be able to take advantage of funding rate surges either. However, when combined with technical analysis, it seems likely that XRP will experience another leg lower within the next day or two.