- XRP’s price may find strong support, with analysts predicting no drop below $1.77.
- Key technical indicators suggest potential price reversal, despite current bearish trend.
- SEC’s February 13 meeting could shape XRP’s regulatory future and market sentiment.
XRP has recently experienced significant price swings, prompting analysts to weigh in on its future trajectory. The cryptocurrency, currently valued at $2.40, has seen a 2.66% decline in the past 24 hours but remains 3.81% higher over the past week.
Analysts Predict Key Support Levels for XRP
Crypto analysts Steph is Crypto and Egrag Crypto have presented different perspectives on XRP’s price movement. According to Steph is Crypto, the final low for XRP has been reached, and the cryptocurrency is unlikely to drop below $1.77 again.
Conversely, Egrag Crypto suggests XRP is mimicking previous trading ranges and highlights key support levels for potential price retracements. In July 2023, XRP surged by 230%, followed by a prolonged period of consolidation. The asset later suffered two major corrections, with declines of 54.65% and 59.73%, offering traders attractive entry points.
If a similar pattern repeats, a 54.65% drop could push XRP to around $1.54, while a 59.73% decline from its recent high of $3.40 might bring it to approximately $1.37. Egrag Crypto notes that these levels resemble past retracement points but with a $1 difference.
Technical Indicators Signal Bearish Momentum
The Relative Strength Index (RSI) for XRP currently stands at 37.71, indicating bearish momentum. However, it is approaching oversold territory, which could signal a potential price reversal. The RSI’s moving average line, positioned at 45.19, serves as a threshold for possible upward movement.
Additionally, the Moving Average Convergence Divergence (MACD) indicator shows that XRP remains in bearish territory, with the MACD line below the signal line at -0.03321. Despite this, the diminishing bearish pressure in the histogram suggests a potential trend reversal if the MACD line crosses above the signal line.
Derivatives Market Trends and Investor Sentiment
XRP’s derivatives market presents mixed signals. According to Coinglass data, trading volume has surged by 36.78% to $6.64 billion, highlighting increased activity. However, open interest has declined by 4.38% to $3.51 billion, indicating a reduction in speculative positions.
Meanwhile, options volume has fallen by 17.60% to $1.54K, reflecting lower engagement in options trading. Despite this, options open interest has risen sharply by 24.20% to $701.94K, suggesting that investors are making long-term commitments.
Upcoming SEC Meeting and Potential Impact on XRP
The SEC’s upcoming closed meeting on February 13 could be significant for XRP. The agenda includes discussions on injunctive actions, administrative proceedings, and litigation claims. This meeting may influence the regulatory outlook for XRP, particularly in light of recent developments within the SEC.
Jorge Tenreiro, a key figure in the SEC’s case against Ripple, has recently moved to another division, which could impact the agency’s approach. The meeting may determine whether the SEC continues its appeal against Ripple or decides to withdraw, affecting investor sentiment and market direction.
