“You are not bullish enough!” An XRP enthusiast exclaimed in X last week after Ripple, who uses the token for cross -border transactions, announced that the United States Stock Exchange and Securities Commission has eliminated its case against it.
Many others share this emotion, and understandably, since the conclusion of this long -standing legal battle has raised a weight that hindered the performance of XRP compared to the broader market during the 2021 bull race. In addition, there is the exaggeration of the ETF XRP and hopes that the Token can become part of the strategic reserve of the United States.
That said, the recent price action does not reflect the previous optimism, with key impulse indicators that show an important bearish change in the trend, warning of a remarkable price drop in front.
XRP increased more than 11% to $ 2.59 last Wednesday, encouraging the news of the SEC. Since then, the follow -up has been everything but optimistic with the prices that extend between $ 2.30 and $ 2.50, despite the optimism that expected the reciprocal commercial tariffs of President Donald Trump on April 2, they could be more measured than he initially expected.
Three -line rest graph
The first indicator signaling of the investment of low trends is the three -line rest table, which focuses only on price movements while filtering short -term noise, helping to identify trend changes as the market suggests and not arbitrary/discretionary trade rules.
The graph consists of vertical blocks called lines or bars (green and red). A bull investment occurs when a green bar occurs with prices that move higher than the highest point of the last three red bars. On the contrary, a bearish change is represented due to the appearance of a new red bar that goes beyond the lowest point of the three previous green bars.
In the case of XRP, a new red bar occurred earlier this month in the weekly period and has remained intact after the news of the SEC. The “weekly” aspect means that this graph adds the price information for a week.
The new red bar indicates a change of bullish impulse to the load. Similar patterns characterized the beginnings of prolonged bears markets in 2021 and early 2018.
Macd
The histogram of divergence of the convergence of the mobile average (MACD), used to measure the resistance of the trend and changes in the trend, is producing deeper bars below the zero line in the weekly table. It is a sign of strengthening the downward impulse.
The same positive indicator in November, after which prices increased from $ 1 to more than $ 3.
Simple mobile averages (SMA) have also crossed bassists, suggesting that the lower resistance path is down.
Bollinger bands
The Bollinger bands, the volatility bands placed two standard deviations above and below the 20 -week SMA of XRP, have expanded in response to the acute price rally at the end of 2024 and early this year.
Historically, prices have tended to move lower after the broad extension of Bollinger’s bands, as observed after mid -2011 and early 2018.
When bullish?
A firm movement of $ 3, the high registered on March 2, will invalidate the bearish configuration, denying the lower maximum pattern to suggest a renovated bullish technical perspective.
Some analysts expect XRP to reach as high as $ 10 at the end of this decade.
