Ripple (XRP) price decline can be linked to Bitcoin’s (BTC) sharp drop on Monday, which managed to maintain the $60,000 support level. XRP price formed a significant technical pattern on June 7 by breaking downward from a symmetrical triangle. This pattern was part of a formation that did not support a bull market.
Critical Level in Ripple
According to CoinGecko, after finding support at the $0.45 level, XRP price retested the lower trend line of the symmetrical triangle and moved further down. The altcoin continues to trade below the 50-day and 200-day simple moving averages (SMA) and faces resistance at the $0.5 level. However, the XRP price is currently at a critical level. While the chart shows a structure indicating a double bottom formation, other market structures suggest more downside potential for the token.
If the price action results in a double bottom formation, XRP could rally by 14% and reach the $0.54 level. Otherwise, if it breaks the current support, it could fall to the $0.42 level and then rise again. The monthly chart of XRP presents an extremely bullish scenario, suggesting the token could rise to the $700 level. However, this largely depends on the outcome of Ripple’s case with the SEC.
Current Data on XRP
Meanwhile, Bitcoin price fell below the $60,000 support level early Monday morning, causing panic in the market. However, the bulls quickly reacted and pushed the price back above this support level. Still, BTC price is trading below the 50-day SMA, and the relative strength index (RSI) is just above the oversold level. The 200-day SMA also provides strong support at the $60,000 price tag.
Ripple and the US Securities and Exchange Commission (SEC) have until July 8 to review their motion to seal documents. Once these documents are submitted to the court, a significant settlement process may begin. Technical analysis expert MekaMark targets a value increase of 100X to 300X for XRP in the next 24 months. Additionally, if Ripple does not lose the case against the SEC, an XRP price in the $30-32 range is expected.
