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The U.S. Securities and Exchange Commission (SEC) lawsuit, which partially declared victory for Ripple, suggests that XRP, which saw a sharp rise in July, may recover after a period of decline where it lost most of its gains.
The “Bullish Divergence” Signal that Excites XRP
XRP, currently the fifth largest cryptocurrency by market value and also the fourth largest altcoin, experienced a bullish divergence in the Relative Strength Index (RSI) on an hourly timeframe, according to the warning issued by the technical analysis platform 100eyes Crypto Scanner.
A bullish divergence in the RSI occurs when a technical indicator rises while the price of an asset falls. This divergence often indicates the possibility of an upward price movement. The bullish divergence observed in XRP could act as a ray of hope for investors in the midst of a bearish market sentiment, where XRP has lost value.
Some investors and traders may see this as a strong buying signal, but those who approach this signal with skepticism may act cautiously, considering that this divergence may be misleading. Additionally, upcoming legal and regulatory developments, as well as market conditions in general, continue to put pressure on XRP.
XRP’s Price Decreased Despite Positive Court Decision
Although Ripple, the issuer of XRP, emerged from the lawsuit filed by the SEC in July with a partial victory, the enthusiasm shown by investors could not be sustained. Following the milestone court decision, XRP’s price reached above $0.90, the highest level of the year, on July 20.
Despite this notable increase, XRP’s price is now trading below $0.50, losing almost all of its post-victory gains. This decline occurred despite other positive legal developments in the cryptocurrency market, including Grayscale Investment‘s significant victory against the SEC. The expectation of a market-wide decline seems to be affecting the price of assets supported by strong fundamentals.
Furthermore, data provided by search engine giant Google also indicates negativity for XRP. The data reflects a significant decrease in recent searches for XRP on Google, indicating a serious decline in investor interest in the altcoin.
