At the start of the week, there were signs of recovery in US regional bank stocks, fueling optimism for a resolution to the banking crisis. However, the price of EdaFace dropped due to Binance’s suspension of EdaFace withdrawals, causing Ripple’s XRP price to take a hit. Within the last 24 hours, XRP has declined by over 2% and is currently trading close to $0.42.
According to the YouTube channel More Crypto Online, XRP may decline due to uncertainty. After analyzing a wave count, they said that there might be a downward move. However, there are different ways to count the waves, either as an A or B wave or even as an Elliott wave triangle, which creates some uncertainty.
They suggest staying focused on the downside as long as the price remains below the last swing high of $0.47. They also mention a possible target of $0.37.4 based on a one-to-one ratio between the length of the A wave and the high of the B wave.
They mention that there was resistance at around $0.41.7 before, which could be the next support level. The next support level after that would be the one-to-one ratio at $0.37.4.
He mentions that in order for a bullish wave count to work, there needs to be a clear support level that holds when the price goes lower. The support level in question is at 40 cents, which is also a 78.6% retracement level.
If the price sees a strong reaction at this level, followed by an impulse, it could indicate a turnaround. However, they remain focused on the downside for now, particularly against the swing low at $0.47 that they highlighted earlier.
The whole industry is currently awaiting the end of the prolonged lawsuit between the SEC and Ripple. If the judge presiding over the Ripple-SEC lawsuit concludes that XRP is a non-security, experts anticipate a historic rally in the price of XRP, as well as a broader market surge.