The XRP price has been pretty bullish for a long time, recording consecutive bullish candles. Moreover, the Ripple vs SEC lawsuit is gaining more traction in recent times as the speculations around the procurement of the final ruling revolve around the crypto space, and the volatility of the token is believed to rise, impacting the price positively.
Conversely, the bulls are also displaying weakness at the moment, ahead of the price approaching a crucial juncture. The bears are slowly outperforming the bulls as the volume has dropped to a large extent. Moreover, the potential divergence between the value of the token and the RSI is hinting at a potential pullback in the near future.
After the recent upswing, the XRP price failed to rally in the past few days and faced a crucial resistance level at $0.46. This is due to the lack of buying pressure, which is mainly because of the sluggish price trend of the star crypto, Bitcoin, which has caused the altcoins to trade sideways. Moreover, the higher highs produced in recent times have exhausted the buyer’s strength to a large extent.
Currently, the possibility of a bearish divergence appears to be higher as the price is now hinting towards an extending descending trend. Therefore, the targets can now be revised to $0.426, which is the first lower target. Further, if the bearish pressure intensifies, the price is believed to drop below $0.4, reaching $0.392. Therefore, it constitutes a drop of 8% initially, and an extended drop my hint at a 15% plunge soon.
